Income Tax Act, 2025
Section 3: Ins. by Act 55 of 2005, s. 4 (w.e.f. 11998).
3. Ins. by Act 55 of 2005, s. 4 (w.e.f. 11998).
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Provided also that in the case of an assessee having export turnover exceeding rupees ten crores
during the previous year, the profits computed under clause (a) or clause (b) or clause (c) of this subsection or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent of any sum referred to in clause (iiie) of section 28, the same
proportion as the export turnover bears to the total turnover of the business carried on by the assessee, if
the assessee has necessary and sufficient evidence to prove that,—
(a) he had an option to choose either the duty drawback or the Duty Free Replenishment
Certificate, being the Duty Remission Scheme; and
(b) the rate of drawback credit attributable to the customs duty was higher than the rate of credit
allowable under the Duty Free Replenishment Certificate, being the Duty Remission Scheme.
Explanation.—For the purposes of this clause, “rate of credit allowable” means the rate of credit
allowable under the Duty Free Replenishment Certificate, being the Duty Remission Scheme calculated
in the manner as may be notified by the Central Government:]
1[Provided also that in case the computation under clause (a) or clause (b) or clause (c) of this
sub-section is a loss, such loss shall be set off against the amount which bears to ninety per cent of—
(a) any sum referred to in clause (iiia) or clause (iiib) or clause (iiic), as the case may be, or
(b) any sum referred to in clause (iiid) or clause (iiie), as the case may be, of section 28, as
applicable in the case of an assessee referred to in the second or the third or the fourth proviso, as the
case may be,
the same proportion as the export turnover bears to the total turnover of the business carried on by the
assessee.]
Explanation.—For the purposes of this sub-section,—
(a) “adjusted export turnover” means the export turnover as reduced by the export turnover in
respect of trading goods;
(b) “adjusted profits of the business” means the profits of the business as reduced by the profits
derived from the business of export out of India of trading goods as computed in the manner provided
in clause (b) of sub-section (3);
(c) “adjusted total turnover” means the total turnover of the business as reduced by the export
turnover in respect of trading goods;
(d) “direct costs” means costs directly attributable to the trading goods exported out of India
including the purchase price of such goods;
(e) “indirect costs” means costs, not being direct costs, allocated in the ratio of the export
turnover in respect of trading goods to the total turnover;
(f) “trading goods” means goods which are not 2[manufactured or processed by the assessee].
or clause
or clause
of this subsection or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent of any sum referred to in clause
of section 28, the same
proportion as the export turnover bears to the total turnover of the business carried on by the assessee, if
the assessee has necessary and sufficient evidence to prove that,—
he had an option to choose either the duty drawback or the Duty Free Replenishment
Certificate, being the Duty Remission Scheme; and
the rate of drawback credit attributable to the customs duty was higher than the rate of credit
allowable under the Duty Free Replenishment Certificate, being the Duty Remission Scheme.
Explanation.—For the purposes of this clause, “rate of credit allowable” means the rate of credit
allowable under the Duty Free Replenishment Certificate, being the Duty Remission Scheme calculated
in the manner as may be notified by the Central Government:]
1[Provided also that in case the computation under clause
or clause
or clause
of this
sub-section is a loss, such loss shall be set off against the amount which bears to ninety per cent of—
any sum referred to in clause
or clause
or clause
any sum referred to in clause
or clause
“adjusted export turnover” means the export turnover as reduced by the export turnover in
respect of trading goods;
“adjusted profits of the business” means the profits of the business as reduced by the profits
derived from the business of export out of India of trading goods as computed in the manner provided
in clause
of sub-section
“adjusted total turnover” means the total turnover of the business as reduced by the export
turnover in respect of trading goods;
“direct costs” means costs directly attributable to the trading goods exported out of India
including the purchase price of such goods;
“indirect costs” means costs, not being direct costs, allocated in the ratio of the export
turnover in respect of trading goods to the total turnover;
“trading goods” means goods which are not 2[manufactured or processed by the assessee].