Income Tax Act, 2025
Section 5: Ins. by Act 10 of 2000, s. 34 (w.e.f. 12001).
5. Ins. by Act 10 of 2000, s. 34 (w.e.f. 12001).
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1[(ii) seventy per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) fifty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2004,]
and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April,
2005 and any subsequent assessment year.]
(2) (a) This section applies to all goods or merchandise, other than those specified in clause (b), if the
sale proceeds of such goods or merchandise exported out of India are 2[received in, or brought into, India]
by the assessee 3[(other than the supporting manufacturer)] in convertible foreign exchange 4[, within a
period of six months from the end of the previous year or, 5[within such further period as the competent
authority may allow in this behalf].]
6[Explanation.—For the purposes of this clause, the expression “competent authority” means the
Reserve Bank of India or such other authority as is authorised under any law for the time being in force
for regulating payments and dealings in foreign exchange.]
(b) This section does not apply to the following goods or merchandise, namely:—
(i) mineral oil ; and
(ii) minerals and ores 7[(other than processed minerals and ores specified in the Twelfth
Schedule)].
8[Explanation 1.—The sale proceeds referred to in clause (a) shall be deemed to have been received
in India where such sale proceeds are credited to a separate account maintained for the purpose by the
assessee with any bank outside India with the approval of the Reserve Bank of India.
Explanation 2.—For the removal of doubts, it is hereby declared that where any goods or
merchandise are transferred by an assessee to a branch, office, warehouse or any other establishment of
the assessee situate outside India and such goods or merchandise are sold from such branch, office,
warehouse or establishment, then, such transfer shall be deemed to be export out of India of such goods
and merchandise and the value of such goods or merchandise declared in the shipping bill or bill of export
as referred to in sub-section (1) of section 50 of the Customs Act, 1962 (52 of 1962), shall, for the
purposes of this section, be deemed to be the sale proceeds thereof.]
1. Subs. by Act 14 of 2001, s. 41, for sub-clauses (ii), (iii) and (iv)(w.e.f. 12002).
seventy per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
fifty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2004,]
and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April,
2005 and any subsequent assessment year.]
(a) This section applies to all goods or merchandise, other than those specified in clause
This section does not apply to the following goods or merchandise, namely:—
mineral oil ; and
minerals and ores 7[(other than processed minerals and ores specified in the Twelfth
Schedule)].
8[Explanation 1.—The sale proceeds referred to in clause
shall be deemed to have been received
in India where such sale proceeds are credited to a separate account maintained for the purpose by the
assessee with any bank outside India with the approval of the Reserve Bank of India.
Explanation 2.—For the removal of doubts, it is hereby declared that where any goods or
merchandise are transferred by an assessee to a branch, office, warehouse or any other establishment of
the assessee situate outside India and such goods or merchandise are sold from such branch, office,
warehouse or establishment, then, such transfer shall be deemed to be export out of India of such goods
and merchandise and the value of such goods or merchandise declared in the shipping bill or bill of export
as referred to in sub-section
of section 50 of the Customs Act, 1962 (52 of 1962), shall, for the
purposes of this section, be deemed to be the sale proceeds thereof.]
1. Subs. by Act 14 of 2001, s. 41, for sub-clauses
and