Income Tax Act, 2025
Section 5: Subs. by Act 22 of 2007, s. 29, for “31st day of March, 2007” (w.e.f. 12008).
5. Subs. by Act 22 of 2007, s. 29, for “31st day of March, 2007” (w.e.f. 12008).
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(5) The amount of deduction in the case of an industrial undertaking located in such industrially
backward districts as the Central Government may, having regard to the prescribed guidelines, by
notification in the Official Gazette, specify in this behalf as industrially backward district of category ‘A’
or an industrially backward district of category ‘B’ shall be,—
(i) hundred per cent of the profits and gains derived from an industrial undertaking located in a
backward district of category ‘A’ for five assessment years beginning with the initial assessment year
and thereafter, twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits
and gains of an industrial undertaking :
Provided that the total period of deduction shall not exceed ten consecutive assessment years or
where the assessee is a co-operative society, twelve consecutive assessment years:
Provided further that the industrial undertaking begins to manufacture or produce articles or things or
to operate its cold storage plant or plants at any time during the period beginning on the 1st day of
October, 1994 and ending on the 1[31st day of March, 2004];
(ii) hundred per cent. of the profits and gains derived from an industrial undertaking located in a
backward district of category ‘B’ for three assessment years beginning with the initial assessment year
and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and
gains of an industrial undertaking:
Provided that the total period of deduction does not exceed eight consecutive assessment years (or where
the assessee is a co-operative society, twelve consecutive assessment years):
Provided further that the industrial undertaking begins to manufacture or produce articles or things or to
operate its cold storage plant or plants at any time during the period beginning on the 1st day of October,
1994 and ending on the 1[31st day of March, 2004].
(6) The amount of deduction in the case of the business of a ship shall be thirty per cent. of the profits
and gains derived from such ship for a period of ten consecutive assessment years including the initial
assessment year provided that the ship—
(i) is owned by an Indian company and is wholly used for the purposes of the business carried on
by it;
(ii) was not, previous to the date of its acquisition by the Indian company, owned or used in
Indian territorial waters by a person resident in India; and
(iii) is brought into use by the Indian company at any time during the period beginning on the 1st
day of April, 1991 and ending on the 31st day of March, 1995.
(7) The amount of deduction in the case of any hotel shall be—
(a) fifty per cent. of the profits and gains derived from the business of such hotel for a period of
ten consecutive years beginning from the initial assessment year as is located in a hilly area or a rural
area or a place of pilgrimage or such other place as the Central Government may, having regard to the
need for development of infrastructure for tourism in any place and other relevant considerations,
specify by notification in the Official Gazette and such hotel starts functioning at any time during the
period beginning on the 1st day of April, 1990 and ending on the 31st day of March, 1994 or
beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2001:
The amount of deduction in the case of an industrial undertaking located in such industrially
backward districts as the Central Government may, having regard to the prescribed guidelines, by
notification in the Official Gazette, specify in this behalf as industrially backward district of category ‘A’
or an industrially backward district of category ‘B’ shall be,—
hundred per cent of the profits and gains derived from an industrial undertaking located in a
backward district of category ‘A’ for five assessment years beginning with the initial assessment year
and thereafter, twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits
and gains of an industrial undertaking :
Provided that the total period of deduction shall not exceed ten consecutive assessment years or
where the assessee is a co-operative society, twelve consecutive assessment years:
Provided further that the industrial undertaking begins to manufacture or produce articles or things or
to operate its cold storage plant or plants at any time during the period beginning on the 1st day of
October, 1994 and ending on the 1[31st day of March, 2004];
hundred per cent. of the profits and gains derived from an industrial undertaking located in a
backward district of category ‘B’ for three assessment years beginning with the initial assessment year
and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and
gains of an industrial undertaking:
Provided that the total period of deduction does not exceed eight consecutive assessment years (or where
the assessee is a co-operative society, twelve consecutive assessment years):
Provided further that the industrial undertaking begins to manufacture or produce articles or things or to
operate its cold storage plant or plants at any time during the period beginning on the 1st day of October,
1994 and ending on the 1[31st day of March, 2004].
The amount of deduction in the case of the business of a ship shall be thirty per cent. of the profits
and gains derived from such ship for a period of ten consecutive assessment years including the initial
assessment year provided that the ship—
is owned by an Indian company and is wholly used for the purposes of the business carried on
by it;
was not, previous to the date of its acquisition by the Indian company, owned or used in
Indian territorial waters by a person resident in India; and
is brought into use by the Indian company at any time during the period beginning on the 1st
day of April, 1991 and ending on the 31st day of March, 1995.
The amount of deduction in the case of any hotel shall be—
fifty per cent. of the profits and gains derived from the business of such hotel for a period of
ten consecutive years beginning from the initial assessment year as is located in a hilly area or a rural
area or a place of pilgrimage or such other place as the Central Government may, having regard to the
need for development of infrastructure for tourism in any place and other relevant considerations,
specify by notification in the Official Gazette and such hotel starts functioning at any time during the
period beginning on the 1st day of April, 1990 and ending on the 31st day of March, 1994 or
beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2001: