Income Tax Act, 2025
Section 4: Ins. by s. 7, ibid. (w.e.f. 12001).
4. Ins. by s. 7, ibid. (w.e.f. 12001).
112
(7) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be,
apply in relation to the undertaking referred to in this section as they apply for the purposes of the
undertaking referred to in section 80-IA.
1[(7A) Where any undertaking of an Indian company which is entitled to the deduction under this
section is transferred, before the expiry of the period specified in this section, to another Indian company
in a scheme of amalgamation or demerger,—
(a) no deduction shall be admissible under this section to the amalgamating or the demerged
company for the previous year in which the amalgamation or the demerger takes place; and
(b) the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting
company as they would have applied to the amalgamating or the demerged company if the
amalgamation or demerger had not taken place.]
2[(7B) The provisions of this section shall not apply to any undertaking, being a Unit referred to in
clause (zc) of section 2 of the Special Economic Zones Act, 2005, which has begun or begins to
manufacture or produce articles or things or computer software during the previous year relevant to the
assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone.
(8) Notwithstanding anything contained in the foregoing provisions of this section, where the
assessee, before the due date for furnishing the return of income under sub-section (1) of section
139,furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not
be made applicable to him, the provisions of this section shall not apply to him for any of the relevant
assessment years.
3* * * * *
4* * * * *
Explanation 2.—For the purposes of this section,—
(i) “computer software” means—
(a) any computer programme recorded on any disc, tape, perforated media or other
information storage device; or
(b) any customized 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 any place outside India by any means;
(ii) “convertible foreign exchange” means foreign exchange which is for the time being treated by
the Reserve Bank of India as convertible foreign exchange for the purposes of 5[the Foreign Exchange
Management Act, 1999 (42 of 1999), and any rules made thereunder or any other corresponding law
for the time being in force;
(iii) “electronic hardware technology park” means any park set up in accordance with the
Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the
Ministry of Commerce and Industry;
(iv) “export turnover” means the consideration 6[in respect of export by the undertaking] of
articles or things or computer software received in, or brought into, India by the assessee in
convertible foreign exchange in accordance with sub-section (3), but does not include freight,
telecommunication charges or insurance attributable to the delivery of the articles or things or
computer software outside India or expenses, if any, incurred in foreign exchange in providing the
technical services outside India;
The provisions of sub-section
and sub-section
of section 80-IA shall, so far as may be,
apply in relation to the undertaking referred to in this section as they apply for the purposes of the
undertaking referred to in section 80-IA.
1[
Where any undertaking of an Indian company which is entitled to the deduction under this
section is transferred, before the expiry of the period specified in this section, to another Indian company
in a scheme of amalgamation or demerger,—
no deduction shall be admissible under this section to the amalgamating or the demerged
company for the previous year in which the amalgamation or the demerger takes place; and
the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting
company as they would have applied to the amalgamating or the demerged company if the
amalgamation or demerger had not taken place.]
2[
The provisions of this section shall not apply to any undertaking, being a Unit referred to in
clause
of section 2 of the Special Economic Zones Act, 2005, which has begun or begins to
manufacture or produce articles or things or computer software during the previous year relevant to the
assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone.
Notwithstanding anything contained in the foregoing provisions of this section, where the
assessee, before the due date for furnishing the return of income under sub-section
of section
139,furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not
be made applicable to him, the provisions of this section shall not apply to him for any of the relevant
assessment years.
3* * * * *
4* * * * *
Explanation 2.—For the purposes of this section,—
“computer software” means—
any computer programme recorded on any disc, tape, perforated media or other
information storage device; or
any customized 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 any place outside India by any means;
“convertible foreign exchange” means foreign exchange which is for the time being treated by
the Reserve Bank of India as convertible foreign exchange for the purposes of 5[the Foreign Exchange
Management Act, 1999 (42 of 1999), and any rules made thereunder or any other corresponding law
for the time being in force;
“electronic hardware technology park” means any park set up in accordance with the
Electronic Hardware Technology Park
Scheme notified by the Government of India in the
Ministry of Commerce and Industry;
“export turnover” means the consideration 6[in respect of export by the undertaking] of
articles or things or computer software received in, or brought into, India by the assessee in
convertible foreign exchange in accordance with sub-section