Income Tax Act, 2025
Section 3: Ins. by Act 27 of 1999, s. 47 (w.e.f. 12000).
3. Ins. by Act 27 of 1999, s. 47 (w.e.f. 12000).
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Explanation.—A person shall be treated as having acquired any shares on the date on which his name
is entered in relation to those shares in the register of members of the public company.]
(6) 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 on the basis of the 1[2*** amount of convertible foreign exchange received by the assessee for
services provided by him to foreign tourists 3[, payments made by him to any assessee referred to in subsection (2A)] and the payments received by him in Indian currency as referred to in the 4[Explanation 1 to
sub-section (2)].]
5[(7) Where a deduction under sub-section (1) is claimed and allowed in respect of profits derived
from the business of a hotel, such part of profits shall not qualify to that extent for deduction for any
assessment year under any other provisions of this Chapter under the heading “C.—Deductions in respect
of certain incomes”, and shall in no case exceed the profits and gains of such hotel.]
Explanation.—For the purposes of this section,—
(a) “travel agent” means a travel agent or other person (not being an airline or a shipping
company) who holds a valid licence granted by the Reserve Bank of India under section 32 of 6[the
Foreign Exchange Management Act, 1999 (42 of 1999)];
(b) “convertible foreign exchange” shall have the meaning assigned to it in clause (a) of
the Explanation to section 80HHC;
(c) “services provided to foreign tourists” shall not include services by way of sale in any shop
owned or managed by the person who carries on the business of a hotel or of a tour operator or of a
travel agent;
7[d) “authorised dealer”, “foreign exchange” and “Indian currency” shall have the meanings
respectively assigned to them in clauses (b), (h) and (k) of section 2 of the 7[Foreign Exchange
Management Act, 1999 (42 of 1999)];]
8[(e) “eligible issue of capital” means an issue made by a public company formed and registered
in India and the entire proceeds of the issue is utilised wholly and exclusively for the purpose of
carrying on the business of—
(i) setting up and running of new hotels approved by the prescribed authority; or
(ii) providing such new facility for the growth of tourism in India, as the Central Government
may, by notification in the Official Gazette, specify.]
1. Subs. by Act 49 of 1991, s. 29, for “amount of convertible foreign exchange received by the assessee for services
provided by him to the foreign tourist” (w.e.f. 11992).
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 on the basis of the 1[2*** amount of convertible foreign exchange received by the assessee for
services provided by him to foreign tourists 3[, payments made by him to any assessee referred to in subsection
Where a deduction under sub-section
is claimed and allowed in respect of profits derived
from the business of a hotel, such part of profits shall not qualify to that extent for deduction for any
assessment year under any other provisions of this Chapter under the heading “C.—Deductions in respect
of certain incomes”, and shall in no case exceed the profits and gains of such hotel.]
Explanation.—For the purposes of this section,—
“travel agent” means a travel agent or other person (not being an airline or a shipping
company) who holds a valid licence granted by the Reserve Bank of India under section 32 of 6[the
Foreign Exchange Management Act, 1999 (42 of 1999)];
“convertible foreign exchange” shall have the meaning assigned to it in clause
of
the Explanation to section 80HHC;
“services provided to foreign tourists” shall not include services by way of sale in any shop
owned or managed by the person who carries on the business of a hotel or of a tour operator or of a
travel agent;
7[d) “authorised dealer”, “foreign exchange” and “Indian currency” shall have the meanings
respectively assigned to them in clauses
and
of section 2 of the 7[Foreign Exchange
Management Act, 1999 (42 of 1999)];]
8[
“eligible issue of capital” means an issue made by a public company formed and registered
in India and the entire proceeds of the issue is utilised wholly and exclusively for the purpose of
carrying on the business of—
setting up and running of new hotels approved by the prescribed authority; or
providing such new facility for the growth of tourism in India, as the Central Government
may, by notification in the Official Gazette, specify.]
1. Subs. by Act 49 of 1991, s. 29, for “amount of convertible foreign exchange received by the assessee for services
provided by him to the foreign tourist” (w.e.f. 11992).