Income Tax Act, 2025
Section 2: Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 11988).
2. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 11988).
383
1[80-IA. Deductions in respect of profits and gains from industrial undertakings or enterprises
engaged in infrastructure development, etc.—2[(1) Where the gross total income of an assessee
includes any profits and gains derived by an undertaking or an enterprise from any business referred to in
sub-section (4) (such business being hereinafter referred to as the eligible business), there shall, in
accordance with and subject to the provisions of this section, be allowed, in computing the total income of
the assessee, a deduction of an amount equal to hundred per cent. of the profits and gains derived from
such business for ten consecutive assessment years.]
(2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him
for any ten consecutive assessment years out of fifteen years beginning from the year in which the
undertaking or the enterprise develops and begins to operate any infrastructure facility or starts providing
telecommunication service or develops an industrial park 3[ 4[or develops a special economic zone
referred to in clause (iii) of sub-section (4)]] or generates power or commences transmission or
distribution of power 5[or undertakes substantial renovation and modernisation of the existing
transmission or distribution lines 6***]:
7[Provided that where the assessee develops or operates and maintains or develops, operates and
maintains any infrastructure facility referred to in clause (a) or clause (b) or clause (c) of
the Explanation to clause (i) of sub-section (4), the provisions of this sub-section shall have effect as if for
the words “fifteen years”, the words “twenty years” had been substituted.]
8[(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), the deduction in
computing the total income of an undertaking providing telecommunication services, specified in clause
(ii) of sub-section (4), shall be hundred per cent of the profits and gains of the eligible business for the
first five assessment years commencing at any time during the periods as specified in sub-section (2) and
thereafter, thirty per cent of such profits and gains for further five assessment years.]
(3) This section applies to 9[an 10[11[undertaking] referred to in clause (ii) 12[or clause (iv) 13***] of
sub-section (4)] which fulfils all the following conditions, namely:—
(i) it is not formed by splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of an 10[undertaking] which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
10[undertaking] as is referred to in section 33B, in the circumstances and within the period specified in
that section;
1. Subs. by Act 27 of 1999, s. 50, for section 80-IA (w.e.f. 12000), earlier inserted by Act 49 of 1991, s. 32
(w.e.f. 11991), and later on amended by Act 18 of 1992, s. 47 (w.e.f. 11993), which was earlier amended by Act 38
of 1993, s. 15 (w.e.f. 11994), earlier amended by Act 32 of 1994, s. 27 (w.e.f. 11994), earlier amended by Act 22
of 1995, s. 19 (w.e.f. 11996), amended by Act 38 of 1996, s. 15 (w.e.f. 11997), amended by Act 26 of 1997, s. 26
(w.e.f. 11996), as so amended by Act 7 of 1998, s. 3 (w.e.f. 11998), amended by Act 21 of 1998, s. 34
(w.e.f. 11998).
Where the gross total income of an assessee
includes any profits and gains derived by an undertaking or an enterprise from any business referred to in
sub-section
(such business being hereinafter referred to as the eligible business), there shall, in
accordance with and subject to the provisions of this section, be allowed, in computing the total income of
the assessee, a deduction of an amount equal to hundred per cent. of the profits and gains derived from
such business for ten consecutive assessment years.]
The deduction specified in sub-section
may, at the option of the assessee, be claimed by him
for any ten consecutive assessment years out of fifteen years beginning from the year in which the
undertaking or the enterprise develops and begins to operate any infrastructure facility or starts providing
telecommunication service or develops an industrial park 3[ 4[or develops a special economic zone
referred to in clause
of sub-section
or clause
or clause
of
the Explanation to clause
of sub-section
Notwithstanding anything contained in sub-section
or sub-section
of sub-section
and
thereafter, thirty per cent of such profits and gains for further five assessment years.]
This section applies to 9[an 10[11[undertaking] referred to in clause
12[or clause
13***] of
sub-section
it is not formed by splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of an 10[undertaking] which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
10[undertaking] as is referred to in section 33B, in the circumstances and within the period specified in
that section;
1. Subs. by Act 27 of 1999, s. 50, for section 80-IA (w.e.f. 12000), earlier inserted by Act 49 of 1991, s. 32
(w.e.f. 11991), and later on amended by Act 18 of 1992, s. 47 (w.e.f. 11993), which was earlier amended by Act 38
of 1993, s. 15 (w.e.f. 11994), earlier amended by Act 32 of 1994, s. 27 (w.e.f. 11994), earlier amended by Act 22
of 1995, s. 19 (w.e.f. 11996), amended by Act 38 of 1996, s. 15 (w.e.f. 11997), amended by Act 26 of 1997, s. 26
(w.e.f. 11996), as so amended by Act 7 of 1998, s. 3 (w.e.f. 11998), amended by Act 21 of 1998, s. 34
(w.e.f. 11998).