Income Tax Act, 2025
Section 8: Ins. by Act 17 of 2013, s. 5 (w.e.f. 12014).
8. Ins. by Act 17 of 2013, s. 5 (w.e.f. 12014).
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1[(50) any income arising from any specified service provided on or after the date on which the
provisions of Chapter VIII of the Finance Act, 2016 comes into force and chargeable to equalisation
levy under that Chapter.
Explanation.—For the purposes of this clause, “specified service” shall have the meaning
assigned to it in clause (i) of section 164 of Chapter VIII of the Finance Act, 2016.]
2[10A. Special provision in respect of newly established undertakings in free trade zone, etc.—
(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an
undertaking from the export of articles or things or computer software for a period of ten consecutive
assessment years beginning with the assessment year relevant to the previous year in which the
undertaking begins to manufacture or produce such articles or things or computer software, as the case
may be, shall be allowed from the total income of the assessee:
Provided that where in computing the total income of the undertaking for any assessment year, its
profits and gains had not been included by application of the provisions of this section as it stood
immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to
deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive
assessment years:
Provided further that where an undertaking initially located in any free trade zone or export
processing zone is subsequently located in a special economic zone by reason of conversion of such free
trade zone or export processing zone into a special economic zone, the period of ten consecutive
assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the
previous year in which the 3[undertaking began to manufacture or produce such articles or things or
computer software] in such free trade zone or export processing zone:
4* * * * *
5[Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction
under this sub-section shall be ninety per cent. of the profits and gains derived by an undertaking from the
export of such articles or things or computer software:]
Provided also that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 6[1st day of April, 2012] and subsequent years.
7[(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computing the total
income of an undertaking, which begins to manufacture or produce articles or things or computer
software during the previous year relevant to any assessment year commencing on or after the 1st day of
April, 2003, in any special economic zone, shall be,—
(i) hundred per cent. of profits and gains derived from the export of such articles or things or
computer software for a period of five consecutive assessment years beginning with the assessment
year relevant to the previous year in which the undertaking begins to manufacture or produce such
articles or things or computer software, as the case may be, and thereafter, fifty per cent. of such
profits and gains for further two consecutive assessment years, and thereafter;
(ii) for the next three 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 Allowance Reserve Account”) to be created and utilised for the
purposes of the business of the assessee in the manner laid down in sub-section (1B):
any income arising from any specified service provided on or after the date on which the
provisions of Chapter VIII of the Finance Act, 2016 comes into force and chargeable to equalisation
levy under that Chapter.
Explanation.—For the purposes of this clause, “specified service” shall have the meaning
assigned to it in clause
of section 164 of Chapter VIII of the Finance Act, 2016.]
2[10A. Special provision in respect of newly established undertakings in free trade zone, etc.—
Subject to the provisions of this section, a deduction of such profits and gains as are derived by an
undertaking from the export of articles or things or computer software for a period of ten consecutive
assessment years beginning with the assessment year relevant to the previous year in which the
undertaking begins to manufacture or produce such articles or things or computer software, as the case
may be, shall be allowed from the total income of the assessee:
Provided that where in computing the total income of the undertaking for any assessment year, its
profits and gains had not been included by application of the provisions of this section as it stood
immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to
deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive
assessment years:
Provided further that where an undertaking initially located in any free trade zone or export
processing zone is subsequently located in a special economic zone by reason of conversion of such free
trade zone or export processing zone into a special economic zone, the period of ten consecutive
assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the
previous year in which the 3[undertaking began to manufacture or produce such articles or things or
computer software] in such free trade zone or export processing zone:
4* * * * *
5[Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction
under this sub-section shall be ninety per cent. of the profits and gains derived by an undertaking from the
export of such articles or things or computer software:]
Provided also that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 6[1st day of April, 2012] and subsequent years.
7[
Notwithstanding anything contained in sub-section
hundred per cent. of profits and gains derived from the export of such articles or things or
computer software for a period of five consecutive assessment years beginning with the assessment
year relevant to the previous year in which the undertaking begins to manufacture or produce such
articles or things or computer software, as the case may be, and thereafter, fifty per cent. of such
profits and gains for further two consecutive assessment years, and thereafter;
for the next three 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 Allowance Reserve Account”) to be created and utilised for the
purposes of the business of the assessee in the manner laid down in sub-section