Income Tax Act, 2025
Section 13: Ins. by Act 32 of 2003, s. 37 (w.e.f. 12004).
13. Ins. by Act 32 of 2003, s. 37 (w.e.f. 12004).
370
1[80HHD. Deduction in respect of earnings in convertible foreign exchange.—(1) Where an
assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the
business of a hotel or of a tour operator, approved by the prescribed authorityin this behalf or of a travel
agent, there shall, in accordance with and subject to the provisions of this section, be allowed, 2[in
computing the total income of the assessee—
(a) for an assessment year beginning on the 1st day of April, 2001, a deduction of a sum equal to
the aggregate of—
(i) forty per cent. of the profits derived by him from services provided to foreign tourists; and
(ii) so much of the amount not exceeding forty per cent of the profits referred to in
sub-clause (i) 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 utilised for the purposes of
the business of the assessee in the manner laid down in sub-section (4);
(b) for an assessment year beginning on the 1st day of April, 2002, a deduction of a sum equal to
the aggregate of—
(i) thirty per cent of the profits derived by him from services provided to foreign tourists; and
(ii) so much of the amount not exceeding thirty per cent of the profits referred to in subclause (i) 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 utilised for the purposes of the
business of the assessee in the manner laid down in sub-section (4);
(c) for an assessment year beginning on the 1st day of April, 2003, a deduction of a sum equal to
the aggregate of—
(i) 3[twenty-five per cent.] of the profits derived by him from services provided to foreign
tourists; and
(ii) so much of the amount not exceeding 3[twenty-five per cent.] of the profits referred to in
sub-clause (i) 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 utilised for the purposes of
the business of the assessee in the manner laid down in sub-section (4);
(d) for an assessment year beginning on the 1st day of April, 2004, a deduction of a sum equal to
the aggregate of—
(i) 4[fifteen per cent.] of the profits derived by him from services provided to foreign tourists;
and
Where an
assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the
business of a hotel or of a tour operator, approved by the prescribed authorityin this behalf or of a travel
agent, there shall, in accordance with and subject to the provisions of this section, be allowed, 2[in
computing the total income of the assessee—
for an assessment year beginning on the 1st day of April, 2001, a deduction of a sum equal to
the aggregate of—
forty per cent. of the profits derived by him from services provided to foreign tourists; and
so much of the amount not exceeding forty per cent of the profits referred to in
sub-clause
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 utilised for the purposes of
the business of the assessee in the manner laid down in sub-section
for an assessment year beginning on the 1st day of April, 2002, a deduction of a sum equal to
the aggregate of—
thirty per cent of the profits derived by him from services provided to foreign tourists; and
so much of the amount not exceeding thirty per cent of the profits referred to in subclause
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 utilised for the purposes of the
business of the assessee in the manner laid down in sub-section
for an assessment year beginning on the 1st day of April, 2003, a deduction of a sum equal to
the aggregate of—
3[twenty-five per cent.] of the profits derived by him from services provided to foreign
tourists; and
so much of the amount not exceeding 3[twenty-five per cent.] of the profits referred to in
sub-clause
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 utilised for the purposes of
the business of the assessee in the manner laid down in sub-section
for an assessment year beginning on the 1st day of April, 2004, a deduction of a sum equal to
the aggregate of—
4[fifteen per cent.] of the profits derived by him from services provided to foreign tourists;
and