Income Tax Act, 2025
Section 5: Subs. by Act 14 of 2001, s. 43, for clauses (ii), (iii) and (iv) (w.e.f. 12002).
5. Subs. by Act 14 of 2001, s. 43, for clauses (ii), (iii) and (iv) (w.e.f. 12002).
378
(b) “convertible foreign exchange” shall have the meaning assigned to it in clause (a) of
the Explanation to section 80HHC;
(c) “export turnover” means the consideration in respect of the software or software rights
specified in clauses (d), (e), (g), (h) and (i), 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 such software outside India or
expenses, if any, incurred in foreign exchange in providing the technical services outside India;
(d) “film software” means a copy of a cinematograph film made by any process analogous to
cinematography on acetate polyester or celluloid film positive, magnetic tape, digital media or other
optical or magnetic devices and certified by the Board of film certification constituted by the Central
Government under section 3 of the Cinematograph Act, 1952 (37 of 1952);
(e) “music software”includes series of sounds or music recorded on magnetic tape, cassette,
compact discs and digital media which can be played or reproduced on any appropriate apparatus;
(f) “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—
(A) 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
(B) the profits of any branch, office, warehouse or any other establishment of the assessee
situated outside India;
(g) “telecast rights” means a licence or contract to exhibit motion pictures or television
programmes over a television network either through terrestrial transmission or through a satellite
broadcast in a specified territory;
(h) “television news software” means a collection of sounds and images, reportage, data and
voice of actualities broadcast either through terrestrial transmission, wire or satellite, live or
pre-recorded on video cassettes or digital media;
(i) “television software” means any programme or series of sounds and images recorded on film
or tape or digital media or broadcast through terrestrial transmitter, satellite or any other means of
diffusion;
(j) “total turnover” shall not include—
(A) any sum referred to in clauses (iiia), (iiib) and (iiic) of section 28;
(B) any freight, telecommunication charges or insurance attributable to the delivery of the
film software, music software, telecast rights, television news software, or television software as
defined in clause (d), (e), (g), (h) or (i), as the case may be, outside India;
(C) expenses, if any, incurred in foreign exchange in providing the technical services outside
India.]
379
1[80-I. Deduction in respect of profits and gains from industrial undertakings after a certain
date, etc.—(1) Where the gross total income of an assessee includes any profits and gains derived from
an industrial undertaking or a ship or the business of a hotel 2[or the business of repairs to ocean-going
vessels or other powered craft], to which this section applies, there shall, in accordance with and subject
to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction
from such profits and gains of an amount equal to twenty per cent. thereof:
Provided that in the case of an assessee, being a company, the provisions of this sub-section 3[shall
have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business
of a hotel] as if for the words “twenty per cent.”, the words “twenty-five per cent.” had been substituted.
4[(1A) Notwithstanding anything contained in sub-section (1), in relation to any profits and gains
derived by an assessee from—
(i) an industrial undertaking which begins to manufacture or produce articles or things or to
operate its cold storage plant or plants; or
(ii) a ship which is first brought into use; or
(iii) the business of a hotel which starts functioning,
on or after the 1st day of April, 1990, 5[but before the 1st day of April, 1991], there shall, in accordance
with and subject to the provisions of this section, be allowed in computing the total income of the
assessee, a deduction from such profits and gains of an amount equal to twenty-five per cent. thereof:
Provided that in the case of an assessee, being a company, the provisions of this sub-section shall
have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business
of a hotel as if for the words “twenty-five per cent.”, the words “thirty per cent.” had been substituted.]
(2) This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
(i) it is not formed by the splitting up, or the reconstruction, of a business already in existence;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
(iii) it manufactures or produces any article or thing, not being any article or thing specified in the
list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of
India, and begins to manufacture or produce articles or things or to operate such plant or plants, at any
time within the period of 6[ten years] next following the 31st day of March, 1981, or such further
period as the Central Government may, by notification in the Official Gazette, specify with reference
to any particular industrial undertaking;
(iv) in a case where the industrial undertaking manufactures or produces articles or things, the
undertaking employs ten or more workers in a manufacturing process carried on with the aid of
power, or employs twenty or more workers in a manufacturing process carried on without the aid of
power:
Provided that the condition in clause (i) shall not apply in respect of any industrial undertaking
which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the
business of any such industrial undertaking as is referred to in section 33B, in the circumstances and
within the period specified in that section:
and
(w.e.f. 12002).
378
“convertible foreign exchange” shall have the meaning assigned to it in clause
of
the Explanation to section 80HHC;
“export turnover” means the consideration in respect of the software or software rights
specified in clauses
and
“film software” means a copy of a cinematograph film made by any process analogous to
cinematography on acetate polyester or celluloid film positive, magnetic tape, digital media or other
optical or magnetic devices and certified by the Board of film certification constituted by the Central
Government under section 3 of the Cinematograph Act, 1952 (37 of 1952);
“music software”includes series of sounds or music recorded on magnetic tape, cassette,
compact discs and digital media which can be played or reproduced on any appropriate apparatus;
“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
situated outside India;
“telecast rights” means a licence or contract to exhibit motion pictures or television
programmes over a television network either through terrestrial transmission or through a satellite
broadcast in a specified territory;
“television news software” means a collection of sounds and images, reportage, data and
voice of actualities broadcast either through terrestrial transmission, wire or satellite, live or
pre-recorded on video cassettes or digital media;
“television software” means any programme or series of sounds and images recorded on film
or tape or digital media or broadcast through terrestrial transmitter, satellite or any other means of
diffusion;
“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
film software, music software, telecast rights, television news software, or television software as
defined in clause
or
expenses, if any, incurred in foreign exchange in providing the technical services outside
India.]
379
1[80-I. Deduction in respect of profits and gains from industrial undertakings after a certain
date, etc.—
Where the gross total income of an assessee includes any profits and gains derived from
an industrial undertaking or a ship or the business of a hotel 2[or the business of repairs to ocean-going
vessels or other powered craft], to which this section applies, there shall, in accordance with and subject
to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction
from such profits and gains of an amount equal to twenty per cent. thereof:
Provided that in the case of an assessee, being a company, the provisions of this sub-section 3[shall
have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business
of a hotel] as if for the words “twenty per cent.”, the words “twenty-five per cent.” had been substituted.
4[
Notwithstanding anything contained in sub-section
an industrial undertaking which begins to manufacture or produce articles or things or to
operate its cold storage plant or plants; or
a ship which is first brought into use; or
the business of a hotel which starts functioning,
on or after the 1st day of April, 1990, 5[but before the 1st day of April, 1991], there shall, in accordance
with and subject to the provisions of this section, be allowed in computing the total income of the
assessee, a deduction from such profits and gains of an amount equal to twenty-five per cent. thereof:
Provided that in the case of an assessee, being a company, the provisions of this sub-section shall
have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business
of a hotel as if for the words “twenty-five per cent.”, the words “thirty per cent.” had been substituted.]
This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
it is not formed by the splitting up, or the reconstruction, of a business already in existence;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
it manufactures or produces any article or thing, not being any article or thing specified in the
list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of
India, and begins to manufacture or produce articles or things or to operate such plant or plants, at any
time within the period of 6[ten years] next following the 31st day of March, 1981, or such further
period as the Central Government may, by notification in the Official Gazette, specify with reference
to any particular industrial undertaking;
in a case where the industrial undertaking manufactures or produces articles or things, the
undertaking employs ten or more workers in a manufacturing process carried on with the aid of
power, or employs twenty or more workers in a manufacturing process carried on without the aid of
power:
Provided that the condition in clause
shall not apply in respect of any industrial undertaking
which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the
business of any such industrial undertaking as is referred to in section 33B, in the circumstances and
within the period specified in that section: