Income Tax Act, 2025
Section 4: Ins. by s. 10, ibid. (w.e.f. 11981).
4. Ins. by s. 10, ibid. (w.e.f. 11981).
360
(5) The provisions of sub-sections (6) and (7) of section 80HH shall, so far as may be, apply in
relation to the computation of the profits and gains of a small-scale industrial undertaking for the
purposes of the deduction under this section as they apply in relation to the computation of the profits and
gains of an industrial undertaking for the purposes of the deduction under that section.
(6) In a case where the assessee is entitled also to the deduction 1[under section 80-I or section 80J] in
relation to the profits and gains of a small-scale industrial undertaking to which this section applies, effect
shall first be given to the provisions of this section.
(7) Where a deduction in relation to the profits and gains of a small-scale industrial undertaking to
which section 80HH applies is claimed and allowed under that section for any assessment year, deduction
in relation to such profits and gains shall not be allowed under this section for the same or any other
assessment year.
(8) Nothing contained in this section shall apply in relation to any small-scale industrial undertaking
engaged in mining.
Explanation.—For the purposes of this section,—
2[(a) “rural area” means any area other than—
(i) an area which is comprised within the jurisdiction of a municipality (whether known as a
municipality, municipal corporation, notified area committee, town area committee, town
committee or by any other name) or a cantonment board and which has a population of not less
than ten thousand according to the last preceding census of which the relevant figures have been
published before the first day of the previous year; or
(ii) an area within such distance, not being more than fifteen kilometres from the local limits
of any municipality or cantonment board referred to in sub-clause (i), as the Central Government
may, having regard to the stage of development of such area (including the extent of, and scope
for, urbanisation of such area) and other relevant considerations specify in this behalf by
notification in the Official Gazette;]
3[(b) an industrial undertaking shall be deemed to be a small-scale industrial undertaking which
is, on the last day of the previous year, regarded as a small-scale industrial undertaking under section
11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951).]
4[80HHB. Deduction in respect of profits and gains from projects outside India.—(1) Where the
gross total income of an assessee being an Indian company or a person (other than a company) who is
resident in India includes any profits and gains derived from the business of—
(a) the execution of a foreign project undertaken by the assessee in pursuance of a contract
entered into by him, or
The provisions of sub-sections
and
of section 80HH shall, so far as may be, apply in
relation to the computation of the profits and gains of a small-scale industrial undertaking for the
purposes of the deduction under this section as they apply in relation to the computation of the profits and
gains of an industrial undertaking for the purposes of the deduction under that section.
In a case where the assessee is entitled also to the deduction 1[under section 80-I or section 80J] in
relation to the profits and gains of a small-scale industrial undertaking to which this section applies, effect
shall first be given to the provisions of this section.
Where a deduction in relation to the profits and gains of a small-scale industrial undertaking to
which section 80HH applies is claimed and allowed under that section for any assessment year, deduction
in relation to such profits and gains shall not be allowed under this section for the same or any other
assessment year.
Nothing contained in this section shall apply in relation to any small-scale industrial undertaking
engaged in mining.
Explanation.—For the purposes of this section,—
2[
“rural area” means any area other than—
an area which is comprised within the jurisdiction of a municipality (whether known as a
municipality, municipal corporation, notified area committee, town area committee, town
committee or by any other name) or a cantonment board and which has a population of not less
than ten thousand according to the last preceding census of which the relevant figures have been
published before the first day of the previous year; or
an area within such distance, not being more than fifteen kilometres from the local limits
of any municipality or cantonment board referred to in sub-clause
an industrial undertaking shall be deemed to be a small-scale industrial undertaking which
is, on the last day of the previous year, regarded as a small-scale industrial undertaking under section
11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951).]
4[80HHB. Deduction in respect of profits and gains from projects outside India.—
Where the
gross total income of an assessee being an Indian company or a person (other than a company) who is
resident in India includes any profits and gains derived from the business of—
the execution of a foreign project undertaken by the assessee in pursuance of a contract
entered into by him, or