Income Tax Act, 2025
Section 4: Ins. by Act 21 of 1998, s.33 (w.e.f. 11999).
4. Ins. by Act 21 of 1998, s.33 (w.e.f. 11999).
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Provided that the certificate specified in clause (b) shall be duly certified by the auditor auditing the
accounts of the exporting assessee under the provisions of this Act or under any other law.]
(5) Where a deduction under this section is claimed and allowed in respect of profits of the business
referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such
profits under any other provision of this Act for the same or any other assessment year.
Explanation.—For the purposes of this section,—
(a) “convertible foreign exchange” shall have the meaning assigned to it in clause (a) of
the Explanation to section 80HHC;
1[(b) “computer software” means,—
(i) any computer programme recorded on any disc, tape, perforated media or other
information storage device; or
(ii) anycustomised electronic data or any product or service of similar nature as may be
notified by the Board,
which is transmitted or exported from India to a place outside India by any means;]
(c) “export turnover” means the consideration in respect of computer software received in, or
brought into, India by the assessee in convertible foreign exchange in accordance with sub-section
(2), but does not include freight, telecommunication charges or insurance attributable to the delivery
of the computer software outside India or expenses, if any, incurred in foreign exchange in providing
the technical services outside India;
1[(ca) “exporting company” means a company referred to in sub-section (1) making actual export
of computer software;]
(d) “profits of the business” means the profits of the business as computed under the head “Profits
and gains of business or profession” as reduced by—
(1) ninety per cent of any receipts by way of brokerage, commission, interest, rent, charges or
any other receipt of a similar nature included in such profits; and
(2) the profits of any branch, office, warehouse or any other establishment of the assessee
situate outside India;]
(e) “total turnover” shall not include—
(i) any sum referred to in clauses (iiia), (iiib) and (iiic) of section 28;
(ii) any freight, telecommunication charges or insurance attributable to the delivery of the
computer software outside India; and
(iii) expenses, if any, incurred in foreign exchange in providing the technical services
outside India;]
2[(ea) “supporting software developer” means an Indian company or a person (other than a
company) resident in India, developing and selling computer software to an exporting company for
the purposes of export.]
shall be duly certified by the auditor auditing the
accounts of the exporting assessee under the provisions of this Act or under any other law.]
Where a deduction under this section is claimed and allowed in respect of profits of the business
referred to in sub-section
for any assessment year, no deduction shall be allowed in relation to such
profits under any other provision of this Act for the same or any other assessment year.
Explanation.—For the purposes of this section,—
“convertible foreign exchange” shall have the meaning assigned to it in clause
of
the Explanation to section 80HHC;
1[
“computer software” means,—
any computer programme recorded on any disc, tape, perforated media or other
information storage device; or
anycustomised electronic data or any product or service of similar nature as may be
notified by the Board,
which is transmitted or exported from India to a place outside India by any means;]
“export turnover” means the consideration in respect of computer software received in, or
brought into, India by the assessee in convertible foreign exchange in accordance with sub-section
“exporting company” means a company referred to in sub-section
making actual export
of computer software;]
“profits of the business” means the profits of the business as computed under the head “Profits
and gains of business or profession” as reduced by—
ninety per cent of any receipts by way of brokerage, commission, interest, rent, charges or
any other receipt of a similar nature included in such profits; and
the profits of any branch, office, warehouse or any other establishment of the assessee
situate outside India;]
“total turnover” shall not include—
any sum referred to in clauses
and
of section 28;
any freight, telecommunication charges or insurance attributable to the delivery of the
computer software outside India; and
expenses, if any, incurred in foreign exchange in providing the technical services
outside India;]
2[
“supporting software developer” means an Indian company or a person (other than a
company) resident in India, developing and selling computer software to an exporting company for
the purposes of export.]