Income Tax Act, 2025
Section 5: Ins. by Act 54 of 2003, s. 3 (w.e.f. 12004).
5. Ins. by Act 54 of 2003, s. 3 (w.e.f. 12004).
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(d) ninety per cent. or more of its sales during the previous year relevant to the assessment year
are by way of exports of the eligible articles or things;
(e) it employs twenty or more workers during the previous year in the process of manufacture or
production.
(3) This section applies to the undertaking, if the sale proceeds of the eligible articles or things
exported out of India are received in or brought into, India by the assessee in convertible foreign
exchange, within a period of six months from the end of the previous year or, within such further period
as the competent authority may allow in this behalf.
Explanation.—For the purposes of this sub-section, the expression “competent authority” means the
Reserve Bank of India or such other authority as is authorised under any law for the time being in force
for regulating payments and dealings in foreign exchange.
(4) For the purposes of sub-section (1), the profits derived from export out of India of the eligible
articles or things shall be the amount which bears to the profits of the business of the undertaking, the
same proportion as the export turnover in respect of such articles or things bears to the total turnover of
the business carried on by the undertaking.
(5) The deduction under sub-section (1) shall not be admissible, unless the assessee furnishes in the
prescribed form, along with the return of income, the report of an accountant, as defined in
the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
(6) Notwithstanding anything contained in any other provision of this Act, where a deduction is
allowed under this section in computing the total income of the assessee, no deduction shall be allowed
under any other section in respect of its export profits.
(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.
Explanation.—For the purposes of this section,—
(a) “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 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;
(b) “eligible articles or things” means all hand-made articles or things, which are of artistic value
and which requires the use of wood as the main raw material;
(c) “export turnover” means the consideration in respect of export by the undertaking of eligible
articles or things 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 outside India;
(d) “export out of India” shall not include any transaction by way of sale or otherwise, in a shop,
emporium or any other establishment situate in India, not involving clearance of any customs station
as defined in the Customs Act, 1962 (52 of 1962).]
1[10BB. Meaning of computer programmes in certain cases.—The profits and gains derived by an
undertaking from the production of computer programmes under section 10B, as it stood prior to its
substitution by section 7 of the Finance Act, 2000 (10 of 2000), shall be construed as if for the words
“computer programmes”, the words “computer programmes or processing or management of electronic
data” had been substituted in that section.]
ninety per cent. or more of its sales during the previous year relevant to the assessment year
are by way of exports of the eligible articles or things;
it employs twenty or more workers during the previous year in the process of manufacture or
production.
This section applies to the undertaking, if the sale proceeds of the eligible articles or things
exported out of India are received in or brought into, India by the assessee in convertible foreign
exchange, within a period of six months from the end of the previous year or, within such further period
as the competent authority may allow in this behalf.
Explanation.—For the purposes of this sub-section, the expression “competent authority” means the
Reserve Bank of India or such other authority as is authorised under any law for the time being in force
for regulating payments and dealings in foreign exchange.
For the purposes of sub-section
The deduction under sub-section
shall not be admissible, unless the assessee furnishes in the
prescribed form, along with the return of income, the report of an accountant, as defined in
the Explanation below sub-section
of section 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
Notwithstanding anything contained in any other provision of this Act, where a deduction is
allowed under this section in computing the total income of the assessee, no deduction shall be allowed
under any other section in respect of its export profits.
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.
Explanation.—For the purposes of this section,—
“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 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;
“eligible articles or things” means all hand-made articles or things, which are of artistic value
and which requires the use of wood as the main raw material;
“export turnover” means the consideration in respect of export by the undertaking of eligible
articles or things received in, or brought into, India by the assessee in convertible foreign exchange in
accordance with sub-section
“export out of India” shall not include any transaction by way of sale or otherwise, in a shop,
emporium or any other establishment situate in India, not involving clearance of any customs station
as defined in the Customs Act, 1962 (52 of 1962).]
1[10BB. Meaning of computer programmes in certain cases.—The profits and gains derived by an
undertaking from the production of computer programmes under section 10B, as it stood prior to its
substitution by section 7 of the Finance Act, 2000 (10 of 2000), shall be construed as if for the words
“computer programmes”, the words “computer programmes or processing or management of electronic
data” had been substituted in that section.]