Income Tax Act, 2025
Section 1: Subs. by Act 20 of 2002, s. 34, for “31st day of March, 2002” (w.e.f. 12003).
1. Subs. by Act 20 of 2002, s. 34, for “31st day of March, 2002” (w.e.f. 12003).
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Provided that nothing contained in this clause shall apply to a hotel located at a place within the
municipal jurisdiction (whether known as a municipality, municipal corporation, notified area
committee or a cantonment board or by any other name) of Calcutta, Chennai, Delhi or Mumbai,
which has started or starts functioning on or after the 1st day of April, 1997 and before the 31st day of
March, 2001:
Provided further that the said hotel is approved by the prescribed authority for the purpose of this
clause in accordance with the rules made under this Act and where the said hotel is approved by the
prescribed authority before the 31st day of March, 1992, shall be deemed to have been approved by
the prescribed authority for the purpose of this section in relation to the assessment year commencing
on the 1st day of April, 1991;
(b) thirty per cent. of the profits and gains derived from the business of such hotel as is located in
any place other than those mentioned in sub-clause (a) for a period of ten consecutive years beginning
from the initial assessment year if such hotel has started or starts functioning at any time during the
period beginning on the 1st day of April, 1991 and ending on the 31st day of March, 1995 or
beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2001:
Provided that nothing contained in this clause shall apply to a hotel located at a place within the
municipal jurisdiction (whether known as a municipality, municipal corporation, notified area
committee, town area committee or a cantonment board or by any other name) of Calcutta, Chennai,
Delhi or Mumbai, which has started or starts functioning on or after the 1st day of April, 1997 and
before the 31st day of March, 2001;
(c) the deduction under clause (a) or clause (b) shall be available only if—
(i) the business of the hotel is not formed by the splitting up, or the reconstruction, of a
business already in existence or by the transfer to a new business of a building previously used as
a hotel or of any machinery or plant previously used for any purpose;
(ii) the business of the hotel is owned and carried on by a company registered in India with a
paid-up capital of not less than five hundred thousand rupees;
(iii) the hotel is for the time being approved by the prescribed authority:
Provided that any hotel approved by the prescribed authority before the 1st day of April, 1999
shall be deemed to have been approved under this sub-section.
1[(7A) The amount of deduction in the case of any multiplex theatre shall be—
(a) fifty per cent of the profits and gains derived, from the business of building, owning and
operating a multiplex theatre, for a period of five consecutive years beginning from the initial
assessment year in any place:
Provided that nothing contained in this clause shall apply to a multiplex theatre located at a place
within the municipal jurisdiction (whether known as a municipality, municipal corporation, notified
area committee or a cantonment board or by any other name) of Chennai, Delhi, Mumbai or Kolkata;
thirty per cent. of the profits and gains derived from the business of such hotel as is located in
any place other than those mentioned in sub-clause
for a period of ten consecutive years beginning
from the initial assessment year if such hotel has started or starts functioning at any time during the
period beginning on the 1st day of April, 1991 and ending on the 31st day of March, 1995 or
beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2001:
Provided that nothing contained in this clause shall apply to a hotel located at a place within the
municipal jurisdiction (whether known as a municipality, municipal corporation, notified area
committee, town area committee or a cantonment board or by any other name) of Calcutta, Chennai,
Delhi or Mumbai, which has started or starts functioning on or after the 1st day of April, 1997 and
before the 31st day of March, 2001;
the deduction under clause
or clause
shall be available only if—
the business of the hotel is not formed by the splitting up, or the reconstruction, of a
business already in existence or by the transfer to a new business of a building previously used as
a hotel or of any machinery or plant previously used for any purpose;
the business of the hotel is owned and carried on by a company registered in India with a
paid-up capital of not less than five hundred thousand rupees;
the hotel is for the time being approved by the prescribed authority:
Provided that any hotel approved by the prescribed authority before the 1st day of April, 1999
shall be deemed to have been approved under this sub-section.
1[
The amount of deduction in the case of any multiplex theatre shall be—
fifty per cent of the profits and gains derived, from the business of building, owning and
operating a multiplex theatre, for a period of five consecutive years beginning from the initial
assessment year in any place:
Provided that nothing contained in this clause shall apply to a multiplex theatre located at a place
within the municipal jurisdiction (whether known as a municipality, municipal corporation, notified
area committee or a cantonment board or by any other name) of Chennai, Delhi, Mumbai or Kolkata;