Income Tax Act, 2025
Section 6: Subs. by Act 14 of 2001, s. 6, for “in respect of export” (w.e.f. 12001).
6. Subs. by Act 14 of 2001, s. 6, for “in respect of export” (w.e.f. 12001).
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(v) “free trade zone” means the Kandla Free Trade Zone and the Santacruz Electronics Export
Processing Zone and includes any other free trade zone which the Central Government may, by
notification in the Official Gazette, specify for the purposes of this section;
(vi) “relevant assessment year” means any assessment year falling within a period of ten
consecutive assessment years referred to in this section;
(vii) “software technology park” means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of Commerce and
Industry;
(viii) “special economic zone” means a zone which the Central Government may, by notification
in the Official Gazette, specify as a special economic zone for the purposes of this section.]
1[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
2[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting
and polishing of precious and semi-precious stones.]
10AA.3[Special provisions in respect of newly established Units in Special Economic Zones.—(1)
Subject to the provisions of this section, in computing the total income of an assessee, being an
entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005, from his
Unit, who begins to manufacture or produce articles or things or provide any services during the previous
year relevant to any assessment year commencing on or after the 1st day of 4[April, 2006, a deduction
of]—
(i) hundred per cent. of profits and gains derived from the export, of such articles or things or
from services for a period of five consecutive assessment years beginning with the assessment year
relevant to the previous year in which the Unit begins to manufacture or produce such articles or
things or provide services, as the case may be, and fifty per cent. of such profits and gains for further
five assessment years and thereafter;
(ii) for the next five consecutive assessment years, so much of the amount not exceeding fifty per
cent. of the profit as is debited to the profit and loss account of the previous year in respect of which
the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic
Zone Re-investment Reserve Account”) to be created and utilized for the purposes of the business of
the assessee in the manner laid down in sub-section (2).
5[Explanation.––For the removal of doubts, it is hereby declared that the amount of deduction
under this section shall be allowed from the total income of the assessee computed in accordance with
the provisions of this Act, before giving effect to the provisions of this section and the deduction
under this section shall not exceed such total income of the assessee.]
(2) The deduction under clause (ii) of sub-section (1) shall be allowed only if the following conditions
are fulfilled, namely:—
(a) the amount credited to the Special Economic Zone Re-investment Reserve Account is to be
utilised—
“free trade zone” means the Kandla Free Trade Zone and the Santacruz Electronics Export
Processing Zone and includes any other free trade zone which the Central Government may, by
notification in the Official Gazette, specify for the purposes of this section;
“relevant assessment year” means any assessment year falling within a period of ten
consecutive assessment years referred to in this section;
“software technology park” means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of Commerce and
Industry;
“special economic zone” means a zone which the Central Government may, by notification
in the Official Gazette, specify as a special economic zone for the purposes of this section.]
1[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
2[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting
and polishing of precious and semi-precious stones.]
10AA.3[Special provisions in respect of newly established Units in Special Economic Zones.—
Subject to the provisions of this section, in computing the total income of an assessee, being an
entrepreneur as referred to in clause
of section 2 of the Special Economic Zones Act, 2005, from his
Unit, who begins to manufacture or produce articles or things or provide any services during the previous
year relevant to any assessment year commencing on or after the 1st day of 4[April, 2006, a deduction
of]—
hundred per cent. of profits and gains derived from the export, of such articles or things or
from services for a period of five consecutive assessment years beginning with the assessment year
relevant to the previous year in which the Unit begins to manufacture or produce such articles or
things or provide services, as the case may be, and fifty per cent. of such profits and gains for further
five assessment years and thereafter;
for the next five consecutive assessment years, so much of the amount not exceeding fifty per
cent. of the profit as is debited to the profit and loss account of the previous year in respect of which
the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic
Zone Re-investment Reserve Account”) to be created and utilized for the purposes of the business of
the assessee in the manner laid down in sub-section
The deduction under clause
of sub-section
shall be allowed only if the following conditions
are fulfilled, namely:—
the amount credited to the Special Economic Zone Re-investment Reserve Account is to be
utilised—