Income Tax Act, 2025
Section 5: Explanation 1 omittedby s. 8 ibid. (w.e.f. 12004).
5. Explanation 1 omittedby s. 8 ibid. (w.e.f. 12004).
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(ii) “convertible foreign exchange” means foreign exchange which is for the time being treated by
the Reserve Bank of India as convertible foreign exchange for the purposes of 1[the Foreign Exchange
Management Act, 1999 (42 of 1999)], and any rules made thereunder or any other corresponding law
for the time being in force;
(iii) “export turnover” means the consideration 2[in respect of export by the undertaking] of
articles or things or computer software received in, or brought into, India by the assessee in
convertible foreign exchange in accordance with sub-section (3), but does not include freight,
telecommunication charges or insurance attributable to the delivery of the articles or things or
computer software outside India or expenses, if any, incurred in foreign exchange in providing the
technical services outside India;
(iv) “hundred per cent. export-oriented undertaking” means an undertaking which has been
approved as a hundred per cent. export-oriented undertaking by the Board appointed in this behalf by
the Central Government in exercise of the powers conferred by section 14 of the Industries
(Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act;
(v) “relevant assessment years” means any assessment years falling within a period of ten
consecutive assessment years, referred to in this section.]
3[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
4[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting
and polishing of precious and semi-precious stones.]
5[10BA. Special provisions in respect of export of certain articles or things.— (1) Subject to the
provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the
export out of India of eligible articles or things, 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,
deduction under section 10A or section 10B has been claimed, the undertaking shall not be entitled to the
deduction under this section:
Provided further that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 1st day of April, 2010 and subsequent years.
(2) This section applies to any undertaking which fulfils the following conditions, namely:—
(a) it manufactures or produces the eligible articles or things without the use of imported raw
materials;
(b) it is not formed by the splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of any undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertaking as is referred to in section 33B, in the circumstances and within the period specified in
that section;
(c) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of
section 80-I shall apply for the purposes of this clause as they apply for the purposes of clause (ii) of
sub-section (2) of that section;
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).
2. Subs. by Act 14 of 2001, s. 7, for the words “in the respect of export” (w.e.f. 12001).
“convertible foreign exchange” means foreign exchange which is for the time being treated by
the Reserve Bank of India as convertible foreign exchange for the purposes of 1[the Foreign Exchange
Management Act, 1999 (42 of 1999)], and any rules made thereunder or any other corresponding law
for the time being in force;
“export turnover” means the consideration 2[in respect of export by the undertaking] of
articles or things or computer software received in, or brought into, India by the assessee in
convertible foreign exchange in accordance with sub-section
“hundred per cent. export-oriented undertaking” means an undertaking which has been
approved as a hundred per cent. export-oriented undertaking by the Board appointed in this behalf by
the Central Government in exercise of the powers conferred by section 14 of the Industries
(Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act;
“relevant assessment years” means any assessment years falling within a period of ten
consecutive assessment years, referred to in this section.]
3[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
4[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting
and polishing of precious and semi-precious stones.]
5[10BA. Special provisions in respect of export of certain articles or things.—
Subject to the
provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the
export out of India of eligible articles or things, 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,
deduction under section 10A or section 10B has been claimed, the undertaking shall not be entitled to the
deduction under this section:
Provided further that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 1st day of April, 2010 and subsequent years.
This section applies to any undertaking which fulfils the following conditions, namely:—
it manufactures or produces the eligible articles or things without the use of imported raw
materials;
it is not formed by the splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of any undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertaking as is referred to in section 33B, in the circumstances and within the period specified in
that section;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section
of
section 80-I shall apply for the purposes of this clause as they apply for the purposes of clause
of
sub-section
of that section;
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).
2. Subs. by Act 14 of 2001, s. 7, for the words “in the respect of export” (w.e.f. 12001).