Section 3. Cereal Based Product industries manufacturing or producing

3. Cereal Based Product industries manufacturing or producing— - (i) Maize Milling including starch and its derivatives; - (ii) Bread, Biscuits, Breakfast Cereal. 13. Clause (a) omitted by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989). Earlier clause (a) was amended by Act 67 of 1984, s. 50 (w.e.f. 1-10-1984). no order reducing or waiving the penalty under sub-section (1) shall be made by[1] [the[2] [Principal Commissioner or Commissioner] except with the previous approval of the[3] [Principal Chief Commissioner or Chief Commissioner] or[4] [Principal Director General or Director General], as the case may be]. (3) Where an order has been made under sub-section (1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the making of such order: 5[Provided that where an order has been made in favour of any person under sub-section (1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years if he makes an application to the income-tax authority referred to in subsection (4) at any time before the 1st day of April, 1992.] 3. The third and fourth provisos omitted by Act 21 of 1998, s. 5 (w.e.f. 1-4-1999). 4. Subs. by s. 5, ibid., for clause (c) (w.e.f. 1-4-1999). 5. Subs. by Act 32 of 2003, s. 6, for "dividends" (w.e.f. 1-4-2004). Provided further that any approval by the Central Government shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years, as may be specified in the order of approval: 1[Provided also that nothing contained in this clause shall apply in respect of any investment made after the 31st day of March, 2000.] Explanation .—For the purposes of this clause,— (a) "venture capital fund" means such fund, operating under a trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908), established to raise monies by the trustees for investments mainly by way of acquiring equity shares of a venture capital undertaking in accordance with the prescribed guidelines; (b) "venture capital company" means such company as has made investments by way of acquiring equity shares of venture capital undertakings in accordance with the prescribed guidelines; and (c) "venture capital undertaking" means such domestic company whose shares are not listed in a recognised stock exchange in India and which is engaged in the— - (i) business of— (A) software; (B) information technology; (C) production of basic drugs in the pharmaceutical sector; (D) bio-technology; 3. The second proviso omitted by Act 20 of 2015, s. 7 (w.e.f. 1-4-2016). 4. Ins. by Act 28 of 2016, s. 7 (w.e.f. 1-4-2016). 5. Ins. by Act 7 of 2017, s. 6 (w.e.f. 1-4-2018). 6. Ins. by Act 13 of 2018, s. 5 (w.e.f. 1-4-2018). 7. Subs. by Act 28 of 2016, s. 7, for the Explanation (w.e.f. 1-4-2016). (c) "recognised stock exchange" shall have the meaning assigned to it in clause (ii) of the Explanation 1 to sub-section (5) of section 43;] 1[(39) any specified income, arising from any international sporting event held in India, to the person or persons notified by the Central Government in the Official Gazette, if such international sporting event— (a) is approved by the international body regulating the international sport relating to such event; (b) has participation by more than two countries; (c) is notified by the Central Government in the Official Gazette for the purposes of this clause. Explanation.— For the purposes of this clause, "the specified income" means the income, of the nature and to the extent, arising from the international sporting event, which the Central Government may notify in this behalf; 3. The Explanation renumbered as Explanation 1 thereof by Act 7 of 2017, s. 8 (w.e.f. 1-4-2018). 4. Subs. by Act 20 of 2002, s. 7 for "twenty-five per cent." (w.e.f. 1-4-2003). 5. Subs. by s. 7, ibid., for "seventy-five per cent." (w.e.f. 1-4-2003). 6. Subs. by Act 20 of 2015, s. 8, for "(such option to be exercised in writing before the expiry of the time allowed under sub-section (1) of section 139 for furnishing the return of income)" (w.e.f. 1-4-2016). 7. Ins. by Act 7 of 2017, s. 8 (w.e.f. 1-4-2018). 8. Ins. by Act 13 of 2018, s. 6 (w.e.f. 1-4-2019). 9. Ins. by Act 32 of 1971, s. 5 (w.r.e.f. 1-4-1962). (ii) where only a part of the net consideration is utilised for acquiring the new capital asset, so much of such capital gain as is equal to the amount, if any, by which the amount so utilised exceeds the cost of the transferred asset; (b) where a capital asset, being property held under trust in part only for such purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the appropriate fraction of the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely:— (i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of the appropriate fraction of such capital gain; 3. The word "eligible" omitted by Act 13 of 1989, s. 7 (w.e.f. 1-4-1991). 4. Ins. by Act 11 of 1987, s. 7 (w.e.f. 1-4-1987). 5. Ins. by Act 12 of 1990, s. 8 (w.e.f. 1-4-1990). 6. Clause (i) omitted by Act 13 of 1989, s. 7 (w.e.f. 1-4-1991). 7. Subs. by Act 11 of 1987, s. 7 for clause (ii) (w.e.f. 1-4-1987). (iv) "Tea Board" means the Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953).] (3)[1] [The profits of business or profession of an assessee for the purposes of sub-section (1) shall] be an amount arrived at after deducting an amount equal to the depreciation computed in accordance with the provisions of sub-section (1) of section 32 from the amounts of profits computed in accordance with the requirements of Parts II and III of the[[2]] [Schedule VI] to the Companies Act, 1956 (1 of 1956), 3[as increased by the aggregate of— the requirements of Parts II and III of the[[2]] [Schedule VI] to the Companies Act, 1956 (1 of 1956), (i) the amount of depreciation; (ii) the amount of income-tax paid or payable, and provision therefor; (iii) the amount of surtax paid or payable under the Companies (Profits) Surtax Act, 1964 (7 of 1964); (iv) the amounts carried to any reserves, by whatever name called; (v) the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities; (vi) the amount by way of provision for losses of subsidiary companies; and 3. The existing section numbered as sub-section (1) thereof by Act 32 of 2003, s. 26 (w.e.f. 1-4-2004). 4. The words "and financed under any international aid programme" omitted by s. 26, ibid. (w.e.f. 1-4-2004). 5. Ins. by s. 26, ibid . (w.e.f. 1-4-2004). 6. Ins. by Act 66 of 1976, s. 10 (w.e.f. 1-6-1976). 1* * * * * (c) the amount of so much of the expenditure in the nature of head office expenditure incurred by the assessee as is attributable to the business or profession of the assessee in India, whichever is the least: Provided that in a case where the adjusted total income of the assessee is a loss, the amount under clause (a) shall be computed at the rate of five per cent.of the average adjusted total income of the assessee. Explanation .—For the purposes of this section,— (i) "adjusted total income" means the total income computed in accordance with the provisions of this Act, without giving effect to the allowance referred to in this section or in sub-section (2) of section 32or the deduction referred to in section 32Aor section 33or section 33A or the first proviso to clause (ix) of sub-section (1) of section 36 or any loss carried forward under sub-section ( 1 section 72 or sub-section (2) of section 73 or[2] [sub-section (1) or sub-section (3) of section 74] or sub-section (3) of section 74A or the deductions under Chapter VI-A; 3. The word "and" omitted by Act 33 of 2009, s. 24 (w.e.f. 1-4-2010). 4. Subs. by s. 24, ibid ., for clause (b) (w.e.f. 1-4-2010). 5. Ins. by Act 20 of 2002, s. 24 (w.e.f. 1-4-2003). 6. Subs. by Act 33 of 2009, s. 25, for "or assessed" (w.e.f. 1-10-2009). 7. Ins. by Act 28 of 2016, s. 31 ( w.e.f. 1-4-2017). Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer.] 1[Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent. of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration.] (2) Without prejudice to the provisions of sub-section (1), where— (a) the assessee claims before any Assessing Officer that the value adopted[2] [or assessed or assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer; 3. The word "and" omitted by Act 33 of 2009, s. 33 (w.e.f. 1-4-2009). 4. Ins. by Act 49 of 1991, s. 26 (w.e.f. 1-10-1991). 5. Subs. by Act 33 of 2009, s. 33, for "made in this behalf:" (w.e.f. 1-4-2009). 6. The proviso omitted by s. 33, ibid ., (w.e.f. 1-10-2009). 7. Ins. by s. 33, ibid . (w.e.f. 1-10-2009). 8. Ins. by Act 44 of 1980, s. 15 (w.r.e.f. 1-4-1962). 9. Ins. by Act 27 of 1999, s. 43 (w.e.f. 1-4-2000). 10. Ins. by Act 4 of 2001, s. 6 (w.e.f. 3-2-2001). 11. Subs. by Act 20 of 2002, s. 30, for "This sub-section" (w.e.f. 3-2-2001). 12. Subs. by s. 30, ibid ., for "on or before the 31st day of March, 2002" (w.e.f. 3-2-2001). 13. Subs. by Act 32 of 2003, s. 36, for "2003" (w.e.f. 3-2-2001). 1[(iv) the amount of donation remaining unutilised on the 31st day of March, 2[2004] is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March,[2] [2004];] (v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed,[3] [on or before the 30th day of June,[2] [2004]].] 4[(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding 5[two thousand rupees] unless such sum is paid by any mode other than cash.] 3. The word "chargeable under section 18" omitted by Act 26 of 1988, s. 27 (w.e.f. 1-4-1989). 4. Subs.by Act 26 of 1974, s. 11, for "section 80H or section 80J" (w.e.f. 1-4-1974). 5. The words, figures, and letter "section 80H or" omitted by Act 41 of 1975, s. 24 (w.e.f. 1-4-1976). 6. Subs. by Act 29 of 1977, s. 29, for "section 80HH or section 80J" (w.e.f. 1-4-1978). 7. Ins. by Act 14 of 1982, s. 32 (w.e.f. 1-4-1983). 8. Ins. by Act 11 of 1983, s. 39 (w.e.f. 1-4-1983). 9. Ins. by Act 3 of 1989, s. 57 (w.e.f. 1-4-1989). 10. Ins. by Act 44 of 1980, s. 35 (w.e.f. 1-4-1981). 11. Ins. by Act 38 of 1993, s. 18 (w.e.f. 1-4-1991). 12. Now section 80J omitted by Act 33 of 1996, s. 29 (w.r.e.f. 1-4-1989). 13. The words, figures and letters "or section 80JJA" omitted by Act 11 of 1983, s. 39 (w.e.f. 1-4-1984). Earlier which was inserted by Act 21 of 1979, s. 22 (w.e.f 1-4-1976). 14. Subs. by Act 41 of 1975, s. 24, for "deduction under section 80H, section 80HH, section 80J and section 80JJ" (w.e.f. 1-4-1976). Section 80J also omitted by s. 25 (w.e.f. 1-4-1976). 15. Subs. by Act 29 of 1977, s. 29, for "section 80HH or section 80J" (w.e.f. 1-4-1978). 16. Subs. by Act 16 of 1981, s. 25,for "section 80HHA, section 80J" (w.e.f. 1-4-1981). 17. Subs. by Act 11 of 1983, s. 39, for "section 80J, section 80JJ or section 80 JJA" (w.e.f. 1-4-1983). 18. Ins. by Act 3 of 1989, s. 57 (w.e.f. 1-4-1989). 19. Ins. by Act 38 of 1993, s. 18 (w.e.f. 1-4-1991). CHAPTER XIV PROCEDURE FOR ASSESSMENT 139. Return of income. —[1] [(1) Every person,— (a) being a[2] [company or a firm]; or (b) being a person[3] [other than a company or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : Provided that a person referred to in clause (b), who is not required to furnish a return under this subsection and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who[4] [during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during the previous year]fulfils any one of the following conditions, namely:— (i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or 3. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Sub-section (5B) omitted by Act 4 of 1988, s. 61 (w.e.f. 1-4-1989) which was earlier inserted by Act 44 of 1980, s. 26 (w.e.f. 1-4-1981). 4. Sub-section (6) omitted by Act 4 of 1988, s. 61 w.e.f. 1-4-1992. 5. Subs. by Act 10 of 1965, s. 39, for "the super-tax" (w.e.f. 1-4-1965). 6. Subs. by Act 67 of 1984, s. 30, for "from the date of the final order passed" (w.e.f. 1-10-1984). 7. Sub-section (7A) omitted by Act 4 of 1988, s. 61 (w.e.f. 1-4-1992). 8. Ins. by Act 67 of 1984, s. 30 (w.e.f. 1-4-1985). at any time before the expiry of the period of eight years from the date of such transfer, the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the transferor company for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the capital asset was so converted or treated or in which the parent company or its nominees or, as the case may be, the holding company ceased to hold the whole of the share capital of the subsidiary company.] 1* * * * * 3. According and withdrawal of recognition. —(1) The[1] [[2] [Principal Chief Commissioner or Chief Commissioner] or[3] [Principal Commissioner or Commissioner]] may accord recognition to any provident fund which, in his opinion, satisfies the conditions prescribed in rule 4 and the rules made by the Board in this behalf, and may, at any time, withdraw such recognition if, in his opinion, the provident fund contravenes any of those conditions: 1. Subs. by Act 4 of 1988, s. 2, for "Commissioner" (w.e.f. 1-4-1988). 2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). 3. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 1[Provided that in a case where recognition has been accorded to any provident fund on or before the 31st day of March, 2006 and such provident fund does not satisfy the conditions set out in clause (ea) of rule 4, the recognition to such fund shall be withdrawn, if such fund does not satisfy, on or before the[2] [[3] [31st day of March, 2014]], the conditions set out in the said clause and any other condition which the Board may, by rules specify, in this behalf:] 4[Provided further that nothing contained in the first proviso shall apply to the provident fund of an establishment in respect of which a notification has been issued by the Central Government under sub-section (2) of section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).] (4) Without prejudice to the powers conferred on him by any other provision of this Act, the[6] [[7] *[2] [Principal Commissioner or Commissioner]] may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount, if he is satisfied that— (i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case; and (ii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him: 8[Provided that where the amount of any penalty payable under this Act or, where such application relates to more than one penalty, the aggregate amount of such penalties exceeds one hundred thousand rupees, no order reducing or waiving the amount or compounding any proceeding for its recovery under this sub-section shall be made by[1] [the[2] [Principal Commissioner or Commissioner] except with the previous approval of the[3] [Principal Chief Commissioner or Chief Commissioner] or[ 4] [Principal Director General or Director General], as the case may be].] 1[ 9A. Certain activities not to constitute business connection in India 3. Explanation renumbered as Explanation 2 thereof by s. 4, ibid . (w.e.f. 1-4-1977). (E) agriculture and allied sectors; or (F) such other sectors as may be notified by the Central Government in this behalf; or (ii) production or manufacture of any article or substance for which patent has been granted to the National Research Laboratory or any other scientific research institution approved by the Department of Science and Technology;] 1[(23FB) any income of a venture capital company or venture capital fund 2[from investment] in a venture capital undertaking: 3 [Provided that nothing contained in this clause shall apply in respect of any income of a venture capital company or venture capital fund, being an investment fund specified in clause (a) of the Explanation 1 to section 115UB, of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2016.] 4[ Explanation .—For the purposes of this clause,— (a) "venture capital company" means a company which— (A) has been granted a certificate of registration, before the 21st day of May, 2012, as a Venture Capital Fund and is regulated under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996 (hereinafter referred to as the Venture Capital Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or 1. Ins. by Act 10 of 2000, s. 5 (w.e.f. 1-4-2001). 2. Subs. by Act 22 of 2007, s. 6, for "set up to raise funds for investment" (w.e.f. 1-4-2008). (40) any income of any subsidiary company by way of grant or otherwise received from an Indian company, being its holding company engaged in the business of generation or transmission or distribution of power if receipt of such income is for settlement of dues in connection with reconstruction or revival of an existing business of power generation: Provided that the provisions of this clause shall apply if reconstruction or revival of any existing business of power generation is by way of transfer of such business to the Indian company notified under sub-clause (a) of clause (v) of sub-section (4) of section 80-IA; (41) any income arising from transfer of a capital asset, being an asset of an undertaking engaged in the business of generation or transmission or distribution of power where such transfer is effected on or before the 31st day of March, 2006, to the Indian company notified under sub-clause (a) of clause (v) of sub-section (4) of section 80-IA;] 2[(42) any specified income arising to a body or authority which— (a) has been established or constituted or appointed under a treaty or an agreement entered into by the Central Government with two or more countries or a convention signed by the Central Government; (b) is established or constituted or appointed not for the purposes of profit; (c) is notified by the Central Government in the Official Gazette for the purposes of this clause. (ii) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset. Explanation. —In this sub-section,— (i) "appropriate fraction" means the fraction which represents the extent to which the income derived from the capital asset transferred was immediately before such transfer applicable to charitable or religious purposes; (ii) "cost of the transferred asset" means the aggregate of the cost of acquisition (as ascertained for the purposes of section 48 and 49) of the capital asset which is the subject of the transfer and the cost of any improvement thereto within the meaning assigned to that expression in sub-clause (b) of clause (1) of section 55; (iii) "net consideration" means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer.] (vii) the amount or amounts of dividends paid or proposed, if any debited to the profit and loss account; and as reduced by any amount or amounts withdrawn from reserves or provisions, if such amounts are credited to the profit and loss account[4] *.] [5] * * * * * (4) No deduction under sub-section (1) shall be allowed in respect of any amount utilised for the purchase of— (a) any machinery or plant to be installed in any office premises or residential accommodation, including any accommodation in the nature of a guest-house; (b) any office appliances (not being computers); (c) any road transport vehicles; (d) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head "Profits and gains of business or profession" of any one previous year; 6 [(e) any new machinery or plant to be installed in an industrial undertaking, other than a smallscale industrial undertaking, as defined in section 80HHA, for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule.] clause (ix) of sub-section (1) of section 36 or any loss carried forward under sub-section (1) of (ii) "average adjusted total income" means,— (a) in a case where the total income of the assessee is assessable for each of the three assessment years immediately preceding the relevant assessment year, one-third of the aggregate amount of the adjusted total income in respect of the previous years relevant to the aforesaid three assessment years; (b) in a case where the total income of the assessee is assessable only for two of the aforesaid three assessment years, one-half of the aggregate amount of the adjusted total income in respect of the previous years relevant to the aforesaid two assessment years; (c) in a case where the total income of the assessee is assessable only for one of the aforesaid three assessment years, the amount of the adjusted total income in respect of the previous year relevant to that assessment year; 3* * * * * (iv) "head office expenditure" means executive and general administration expenditure incurred by the assessee outside India, including expenditure incurred in respect of— (a) rent, rates, taxes, repairs or insurance of any premises outside India used for the purposes of the business or profession; (b) the value so adopted[2] [or assessed or assessable] by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. 3 [ Explanation 1.]—For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 4[ Explanation 2.—For the purposes of this section, the expression "assessable" means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.] Explanation 1.—An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5). 6[ Explanation 2.—For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely:— 7[(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of[8] [section 11, section 12 or section 12A; (ii) that, under clause (c) of sub-section (1) of section 13, the exemption under[9] [section 11 or section 12] is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern].] Explanation 3.—In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature. 20. Subs. by Act 11 of 1983, s. 39, for "section 80J, section 80JJ and section 80JJA" (w.e.f. 1-4-1984). Now, section 80J omitted by Act 33 of 1996, s. 29 (w.e.f. 1-4-1989) and section 80JJ omitted by Act 26 of 1997, s. 26 (w.e.f. 1-4-1998). 1[(4) The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. Explanation .—For the purposes of this sub-section,— (a) "co-operative bank" and "primary agricultural credit society" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949); (b) "primary co-operative agricultural and rural development bank"means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.] (ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or 5* * * * * (iv) has incurred expenditure for himself or any other person on travel to any foreign country; or (v) is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or (vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more, shall furnish a return, of his income[6] [during any previous year ending before the 1st day of April, 2005], on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : Provided further that the Central Government may, by notification in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply: Providedalso that every[2] [company or a firm] shall furnish on or before the due date the return in respect of its income or loss in every previous year: 2[(10A) Where in the assessment for any year, a capital gain arising from the transfer of a 3[long-term capital asset], is charged to tax and within a period of six months after the date of such transfer, the assessee has made any investment or deposit in any specified asset within the meaning of Explanation 1 to sub-section (1) of section 54E, the[4] [Assessing Officer] shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax[5] [under the provisions of sub-section (1) of section 54E]; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being[6] [reckoned from the end of the financial year in which the assessment was made].] 7* * * * * (2) An order according recognition shall take effect on such date as the[5] [[6] [Principal Chief Commissioner or Chief Commissioner] or[7] [Principal Commissioner or Commissioner]] may fix in accordance with any rules the Board may make in this behalf, such date not being later than the last day of the financial year in which the order is made. (3) An order withdrawing recognition shall take effect from the date on which it is made. (4) An order according recognition to a provident fund shall not, unless the[5] [[6] [Principal Chief Commissioner or Chief Commissioner] or[7] [Principal Commissioner or Commissioner]] otherwise directs, be affected by the fact that the fund is subsequently amalgamated with another provident fund on the occurrence of an amalgamation of the undertakings in connection with which the two funds are maintained, or that it subsequently absorbs the whole or a part of another provident fund belonging to an undertaking which is wholly or in part transferred to or merged in the undertaking of the employer maintaining the first-mentioned fund. 9[(4A) The order under sub-section (4), either accepting or rejecting the application in full or in part, shall be passed within a period of twelve months from the end of the month in which the application under the said sub-section is received by the Principal Commissioner or the Commissioner: Provided that no order rejecting the application, either in full or in part, shall be passed unless the assessee has been given an opportunity of being heard: Provided further that where any application is pending as on the 1st day of June, 2016, the order shall be passed on or before the 31st day of May, 2017.] (5) Every order made under this section shall be final and shall not be called into question by any court or any other authority.] 1. Subs. by Act 38 of 1993, s. 36, for "the Chief Commissioner or Commissioner except with the previous approval of the Board" (w.e.f. 1-6-1993). Earlier the words "Chief Commissioner or Commissioner" were substituted by Act 4 of 1988, s. 2, for "Commissioner" (w.e.f. 1-4-1988). 2. Subs. by Act 25 of 2014, s. 4, for "Commissioner" (w.r.e.f. 1-6-2013). 3. Subs. by s. 4, ibid., for "Chief Commissioner" (w.r.e.f. 1-6-2013). 4. Subs. by s. 4, ibid., for "Director General" (w.r.e.f. 1-6-2013). 5. Ins. by Act 49 of 1991, s. 69 (w.e.f. 27-9-1991). 6. Subs. by Act 4 of 1988, s. 2, for "Commissioner" (w.e.f. 1-4-1988). 7. The words "Chief Commissioner or" omitted by Act 38 of 1993, s. 36 (w.e.f. 1-6-1993). 3. The word "and" omitted by Act 8 of 2011, s. 6 (w.e.f. 1-4-2012). 4. Ins. by s. 6, ibid . (w.e.f. 1-4-2012). 3. Ins. by Act 20 of 2015, s. 7 (w.e.f. 1-4-2016). 4. Subs. by Act 17 of 2013, s. 5 for the Explanation 1 (w.e.f. 1-4-2013). (B) has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (hereinafter referred to as the Alternative Investment Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), and which fulfils the following conditions, namely:— (i) it is not listed on a recognised stock exchange; (ii) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; and (iii) it has not invested in any venture capital undertaking in which its director or a substantial shareholder (being a beneficial owner of equity shares exceeding ten per cent. of its equity share capital) holds, either individually or collectively, equity shares in excess of fifteen per cent. of the paid-up equity share capital of such venture capital undertaking; (b) "venture capital fund" means a fund— (A) operating under a trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908), which— Explanation .—For the purposes of this clause, "specified income" means the income, of the nature and to the extent, arising to the body or authority referred to in this clause, which the Central Government may notify in this behalf;] 3[(43) any amount received by an individual as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in clause (xvi) of section 47;] 4[(44) any income received by any person for, or on behalf of, the New Pension System Trust established on the 27th day of February, 2008 under the provisions of the Indian Trusts Act, 1882 (2 of 1882);] 5[(45) any allowance or perquisite, as may be notified by the Central Government in the Official Gazette in this behalf, paid to the Chairman or a retired Chairman or any other member or retired member of the Union Public Service Commission;] 1. Ins. by Act 55 of 2005, s. 2 (w.e.f. 1-4-2006). 2. Ins. by Act 21 of 2006. s. 4 (w.e.f. 1-4-2007). 3. Ins. by Act 43 of 2008, s. 4 (w.e.f. 1-4-2008). 4. Ins. by Act 33 of 2009, s. 4 (w.e.f. 1-4-2009). 5. Ins. by Act 8 of 2011, s. 4 (w.e.f. 1-4-2008). 1[(46) any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called)[2] [, or a class thereof] which— 1[(1B) Where any income in respect of which an option is exercised under clause (2) of the Explanation to sub-section (1) is not applied to charitable or religious purposes in India during the period referred to in sub-clause (a) or, as the case may be, sub-clause (b), of the said clause, then, such income shall be deemed to be the income of the person in receipt thereof— (a) in the case referred to in sub-clause (i) of the said clause, of the previous year immediately following the previous year in which the income was received; or (b) in the case referred to in sub-clause (ii) of the said clause, of the previous year immediately following the previous year in which the income was derived. 2[(2) 3[Where 4[eighty-five per cent.] of the income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes in India, such income so accumulated or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided the following conditions are complied with, namely:—] (5) The deduction under sub-section (1) shall not be admissible unless the accounts of the business or profession of the assessee for the previous year relevant to the assessment year for which the deduction is claimed have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant: 1. Subs. by Act 13 of 1989, s. 7, for certain words (w.e.f. 1-4-1991). 2. Subs. by s. 7, ibid., for "Sixth Schedule" (w.e.f. 1-4-1991). 3. Subs. by Act 11 of 1987, s. 7, for certain words (w.e.f. 1-4-1987). (b) salary, wages, annuity, pension, fees, bonus, commission, gratuity, perquisites or profits in lieu of or in addition to salary, whether paid or allowed to any employee or other person employed in, or managing the affairs of, any office outside India; (c) travelling by any employee or other person employed in, or managing the affairs of, any office outside India; and (d) such other matters connected with executive and general administration as may be prescribed.] 1. Clause (b) omitted by Act 38 of 1993, s. 11 (w.e.f. 1-4-1993). 2. Subs. by Act 11 of 1987, s. 74, for "sub-section (1) of section 74" (w.e.f. 1-4-1988). 3. Clause (iii) omitted by Act 38 of 1993, s. 11 (w.e.f. 1-4-1993). 1 [44D. Special provisions for computing income by way of royalties, etc., in the case of foreign companies.— Notwithstanding anything to the contrary contained in sections 28 to 44C, in the case of an assessee, being a foreign company,— (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted[2] [or assessed or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted[2] [or assessed or assessable] by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.] 10[ Explanation 4.—For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.] 11[ Explanation 5.—For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.] 12* * * * * 1. Subs. by Act 20 of 2002, s. 30, for clause (iv) (w.e.f. 3-2-2001). 2. Subs. by Act 32 of 2003, s. 36, for "2003" (w.e.f. 3-2-2001). 3. Subs. by s. 30, ibid., for "on or before the 30th day of June, 2002" (w.e.f. 3-2-2001). 4. Ins. by Act 23 of 2012, s. 28 (w.e.f. 1-4-2013). 5. Subs by Act 7 of 2017, s. 35 for "ten thousand rupees" (w.e.f. 1-4-2018). 6. Subs. by Act 19 of 1970, s. 13, for the Explanation 2 (w.e.f. 1-4-1971) earlier substituted by Act 20 of 1967, s. 33 and the Third Schedule (w.e.f. 1-4-1967). 1. Subs. by Act 14 of 2001, s. 59, for sub-section (1) (w.e.f. 1-4-2001). Earlier substituted by 13 of 1963, s. 8 (w.r.e.f. 1-41962). As amended by Act 27 of 1967, s. 4 (w.e.f. 1-10-1967). As so amended by Act 42 of 1970, s. 26 (w.e.f. 1-4-1970). As amended by Act 16 of 1972, s. 26 (w.e.f. 1-4-1972). Amended by Act 4 of 1988, s. 42 (w.e.f. 1-4-1988). As so amended by Act 3 of 1989, s. 20 (w.e.f. 1-4-1989).Earlier amended by Act 12 of 1990, s. 34 (w.e.f. 1-4-1991). Amended by Act 18 of 1992, s. 59 (w.e.f. 1-4-1993). 2. Subs. by Act 18 of 2005, s. 40, for "company" (w.e.f. 1-4-2006). 3. Subs. by s. 40, ibid ., for "other than a company" (w.e.f. 1-4-2006). 4. Subs. by s. 40, ibid., for "at any time during the previous year" (w.e.f. 1-4-2006). 5. Clause (iii) omitted by s. 40, ibid . (w.e.f. 1-4-2006). 6. Subs. by Act 21 of 2006, s. 31, for "during the previous year" (w.e.f. 1-4-2006). 1[Provided also that a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6, who is not required to furnish a return under this sub-section and who at any time during the previous year,— (a) holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India; or (b) is a beneficiary of any asset (including any financial interest in any entity) located outside India, 8[(11) Where in the assessment for any year, a capital gain arising from the transfer of any original asset as is referred to in section 54H is charged to tax and within the period extended under that section the assessee acquires the new asset referred to in that section or, as the case may be, deposits or invests the amount of such capital gain within the period so extended, the Assessing Officer shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax under any of the sections referred to in section 54H; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of section 154 being reckoned from the end of the previous year in which the compensation was received by the assessee. 5. The words ", other than a person referred to in sub-section (1D)," omitted by Act 7 of 2017, s. 72 (w.e.f. 1-4-2017). (ii) has taken into account such amount for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:] 1[Provided further that] no penalty shall be charged under section 221 from such person unless the Assessing Officer is satisfied that the person has without good and sufficient reasons failed to collect and pay the tax.] (7) Without prejudice to the provisions of sub-section (6), if the[2] [person responsible for collecting tax] does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of[3] [one per cent.] per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid 4[and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3)]: 3. Explanation numbered as Explanation 1 thereof by Act 25 of 2014, s. 13 (w.e.f. 1-4-2015). 4. Ins. by s. 13, ibid . (w.e.f. 1-4-2015). 5. Sub-section (2) omitted by Act 26 of 1997, s. 8 (w.e.f. 1-4-1998). 6. Ins. by Act 29 of 1978, s. 2 (w.e.f. 1-4-1979). 7. Sub-section (3) omitted by Act 26 of 1997, s. 8 (w.e.f. 1-4-1998). 8. Sub-sections (3A), (3B), (3C) and (3D) omitted by Act 32 of 1985, s. 11 (w.e.f. 1-4-1986). 9. Sub-sections (4) and (5) omitted by Act 26 of 1997, s. 8 (w.e.f. 1-4-1998). 10. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer", (w.e.f. 1-4-1988). clauses (i) and (ii) of section 31 and[1] [clause (ii) of sub-section (1)] of section 32 shall be restricted to a fair proportionate part thereof which the[2] [Assessing Officer] may determine, having regard to the user of such building, machinery, plant or furniture for the purposes of the business or profession. (I) has been granted a certificate of registration, before the 21st day of May, 2012, as a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or (II) has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund under the Alternative Investment Funds Regulations and which fulfils the following conditions, namely:— (i) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; (ii) it has not invested in any venture capital undertaking in which its trustee or the settler holds, either individually or collectively, equity shares in excess of fifteen per cent. of the paid-up equity share capital of such venture capital undertaking; and (iii) the units, if any, issued by it are not listed in any recognised stock exchange; or (B) operating as a venture capital scheme made by the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963); (c) "venture capital undertaking" means— (i) a venture capital undertaking as defined in clause (n) of regulation 2 of the Venture Capital Funds Regulations; or (ii) a venture capital undertaking as defined in clause (aa) of sub-regulation (1) of regulation 2 of the Alternative Investment Funds Regulations;]] 1* * * * * (a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public; (b) is not engaged in any commercial activity; and (c) is notified by the Central Government in the Official Gazette for the purposes of this clause. Explanation .—For the purposes of this clause, "specified income" means the income, of the nature and to the extent arising to a body or authority or Board or Trust or Commission (by whatever name called)[2] [, or a class thereof] referred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf; (47) any income of an infrastructure debt fund, set up in accordance with the guidelines as may be prescribed, which is notified by the Central Government in the Official Gazette for the purposes of this clause;] 3[(48) any income received in India in Indian currency by a foreign company on account of 4[sale of crude oil, any other goods or rendering of services, as may be notified by the Central Government in this behalf, to any person] in India: Provided that— (i) receipt of such income in India by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government; 5 3 [(a) such person furnishes a statement in the prescribed form and in the prescribed manner to the Assessing Officer, stating the purpose for which the income is being accumulated or set apart and 1. Ins. by Act 41 of 1975, s. 4 (w.e.f. 1-4-1976). 2. Subs. by Act 19 of 1970, s. 5, for sub-section (2) (w.e.f. 1-4-1971). 3. Subs. by Act 41 of 1975, s. 4, for certain words (w.e.f. 1-4-1976). 4. Subs. by Act 20 of 2002, s. 7, for "seventy-five per cent." (w.e.f. 1-4-2003). 5. Subs. by Act 20 of 2015, s. 8, for clauses (a), (b) and the first and second provisos (w.e.f. 1-4-2016). the period for which the income is to be accumulated or set apart, which shall in no case exceed five years; (b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5); (c) the statement referred to in clause (a) is furnished on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year: Provided that in computing the period of five years referred to in clause (a), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded.]] (a) the deductions admissible under the said sections in computing the income by way of royalty or fees for technical services received[2] [from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or with the Indian concern] before the 1st day of April, 1976, shall not exceed in the aggregate twenty per cent of the gross amount of such royalty or fees as reduced by so much of the gross amount of such royalty as consists of lump sum consideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process or trade mark or similar property; (b) no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing the income by way of royalty or fees for technical services received [from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or with the Indian concern] after the 31st day of March, 1976[3] [but before the 1st day of April, 2003;] [4] * * * * * Explanation .—For the purposes of this section,— (a) "fees for technical services" shall have the same meaning as in[5] [ Explanation 2 to clause (vii) of sub-section (1) of section 9] ; (b) "foreign company" shall have the same meaning as in section 80B; shall furnish, on or before the due date, a return in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed: Provided also that nothing contained in the fourth proviso shall apply to an individual, being a beneficiary of any asset (including any financial interest in any entity) located outside India where, income, if any, arising from such asset is includible in the income of the person referred to in clause (a) of that proviso in accordance with the provisions of this Act:] 2[Provided alsothat every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the[3] [provisions of clause (38) of section 10 or section 10 or section 10B or section 10BA] or Chapter VIA exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.] 9[(11A) Where in the assessment for any year, the deduction under section 10A or section 10B or section 10BA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of 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 and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 10A or section 10B or section 10BA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India, and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into, India.] 5[Provided that in case any person6*responsible for collecting tax in accordance with the provisions of this section, fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee but is not deemed to be an assessee in default under the first proviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee.] (8) Where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the[2] [person responsible for collecting tax].] 7[(9) Where the Assessing Officer is satisfied that the total income of the 8[buyer or licensee or lessee] justifies the collection of the tax at any lower rate than the relevant rate specified in sub-section (1)[9] [or sub-section (1C)][10] *, the Assessing Officer shall, on an application made by the buyer or licensee or lessee in this behalf, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in sub-section (1)[9] [or sub-section (1C)][10] *. 3. The Explanation renumbered as Explanation 1 thereof by s. 25, ibid. (w.e.f. 1-10-2009). 4. Ins. by s. 25, ibid . (w.e.f. 1-10-2009). 5. Ins. by Act 7 of 2017, s. 26 (w.e.f. 1-4-2018). 6. Ins. by Act 23 of 2012, s. 17 (w.e.f. 1-4-2013). (ii) having regard to the national interest, the foreign company and the agreement or arrangement are notified by the Central Government in this behalf; and (iii) the foreign company is not engaged in any activity, other than receipt of such income, in India;] 5[(48A) any income accruing or arising to a foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India: Provided that— (i) the storage and sale by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government; and (ii) having regard to the national interest, the foreign company and the agreement or arrangement are notified by the Central Government in this behalf;] 6[(48B) any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry of the agreement or the arrangement referred to in clause (48A)[7] [or on termination of the said agreement or the arrangement, in accordance with the terms mentioned therein, as the case may be,] subject to such conditions as may be notified by the Central Government in this behalf;] 1 [ Explanation .—Any amount credited or paid, out of income referred to in clause (a) or clause (b) of sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or set apart, to any trust or institution registered under section 12AA or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, shall not be treated as application of income for charitable or religious purposes, either during the period of accumulation or thereafter.] 2[(3) Any income referred to in sub-section (2) which— (a) is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be accumulated or set apart for application thereto, or 3[(b) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or] (c) is not utilised for the purpose for which it is so accumulated or set apart during the period referred to in clause (a) of that sub-section or in the year immediately following the expiry thereof, (c) "royalty" shall have the same meaning as in[6] [ Explanation 2 to clause (vi) of sub-section (1) of section 9]; (d) royalty received[2] [from Government or an Indian concern in pursuance of an agreement made by a foreign company with Government or with the Indian concern] after the 31st day of March, 1976, shall be deemed to have been received in pursuance of an agreement made before the 1st day of April, 1976, if such agreement is deemed, for the purposes of the proviso to clause ( vi sub-section (1) of section 9, to have been made before the 1st day of April, 1976.] April, 1976, if such agreement is deemed, for the purposes of the proviso to clause (vi) of 7[44DA. Special provision for computing income by way of royalties, etc., in case of nonresidents. — (1) The income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by a non-resident (not being a company) or a foreign company with Government or the Indian concern after the 31st day of March, 2003, where such non-resident (not being a company) or a foreign company carries on business in India through a permanent establishment situated therein, or performs professional services from a fixed place of 1. Ins. by Act 66 of 1976, s. 10 (w.e.f. 1-6-1976). 2. Subs. by Act 11 of 1983, s. 19, for certain words (w.e.f. 1-6-1983). 3. Ins. by Act 32 of 2003, s. 27 (w.e.f. 1-4-2004). Explanation 1.— For the purposes of this sub-section, the expression "motor vehicle" shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988). Explanation 2.— In this sub-section, "due date" means,— (a) where the assessee[4] [other than an assessee referred to in clause (aa)] is— (i) a company[5] *; or (ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or (iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force, The[6] [30th day of September] of the assessment year; 7 8 [(aa) in the case of an assessee [who] is required to furnish a report referred to in section 92E, the 30th day of November of the assessment year; (b) in the case of a person other than a company, referred to in the first proviso to this subsection, the 31st day of October of the assessment year; (c) in the case of any other assessee, the 31st day of July of the assessment year. 1. Subs. by Act 20 of 2015, s. 35, for the proviso (w.e.f. 1-4-2016). Earlier Substituted by Act 23 of 2012, s. 59 (w.e.f. 1-4-2012). 2. Ins. by Act 18 of 2005, s. 40 (w.e.f. 1-4-2006). 3. Subs. by Act 28 of 2016, s. 67, for "provisions of section 10A" (w.e.f. 1-4-2017). 4. Ins. by Act 23 of 2012, s. 59 (w.e.f. 1-4-2012). (12) Where in the assessment for any year commencing before the 1st day of April, 1988, the deduction under section 80-O in respect of any income, being the whole or any part of income by way of royalty, commission, fees or any similar payment as is referred to in that section, has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible 1. Sub-sections (8), (8A), (9), (9A) and (10) omitted by Act 4 of 1988, s. 61 (w.e.f. 1-4-1992). 2. Ins. by Act 29 of 1977, s. 23 (w.e.f. 1-4-1978). 3. Subs. by Act 11 of 1987, s. 74, for "capital asset, not being a short-term capital asset" (w.e.f. 1-4-1988). 4. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 5. Subs. by Act 19 of 1978, s. 19, for "under the provisions of section 54E" (w.r.e.f. 1-4-1974). 6. Subs. by Act 67 of 1984, s. 30, for "reckoned from the date of the assessment" (w.e.f. 1-10-1984). 7. Sub-section (10B) and (10C) omitted by Act 4 of 1988, s. 61 (w.e.f. 1-4-1992). 8. Ins. by Act 49 of 1991, s. 48 (w.e.f. 1-10-1991). Sub-section (11) was omitted by Act 32 of 1985, s. 36 (w.e.f. 1-4-1986) and sub-section (12) was omitted by Act 11 of 1987, s. 44 (w.e.f. 1-4-1988) which were earlier inserted by Act 20 of 1974, s. 13 (w.e.f. 1-4-1974). (10) Where a certificate under sub-section (9) is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate. 1. Subs. by Act 23 of 2012, s. 81, for "Provided that" (w.e.f. 1-7-2012). 2. Subs. by Act 21 of 2006, s. 47, for "seller" (w.e..f 1-4-2007). 3. Subs. by Act 54 of 2003, s. 9, for "one and one-fourth per cent." (w.e.f. 8-9-2003). 4. Ins. by Act 21 of 2006, s. 47 (w.e.f. 1-6-2006). 5. Ins. by Act 23 of 2012, s. 81 (w.e.f. 1-7-2012). 6. The words ", other than a person referred to in sub-section (1D)," omitted by Act 7 of 2017, s. 72 (w.e.f. 1-4-2017). 7. Ins. by Act 27 of 1999, s. 80 (w.e.f. 1-6-1999). 8. Subs. by Act 23 of 2004, s. 50, for "buyer" (w.e.f. 1-10-2004). 9. Ins. by s. 50, ibid. (w.e.f. 1-10-2004). 10. The words "or sub-section (1D)" omitted by Act 7 of 2017, s. 72 (w.e.f. 1-4-2017). (11) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (9) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.] 1[ Explanation. —For the purposes of this section,— 3. The word "very" omitted by s. 26 (w.e.f. 1-4-2019). 4. Subs. by Act 20 of 2015, s. 19, for "or in sub-section (3)" (w.e.f. 1-4-2016). 5. The words "or a very senior citizen" omitted by Act 13 of 2018, s. 26 (w.e.f. 1-4-2019) which was earlier inserted by Act 20 of 2015, s. 19 (w.e.f. 1-4-2016). 6. Subs. by Act 20 of 2015, s. 19, ibid., for "fifteen thousand rupees" (w.e.f. 1-4-2016). 7. Subs. by Act 13 of 2018, s. 26, for "thirty thousand rupees" (w.e.f. 1-4-2019). Earlier it was substituted by s. 19, ibid ., for "twenty thousand rupees" (w.e.f. 1-4-2016). 8[(49) any income of the National Financial Holdings Company Limited, being a company set up by the Central Government, of any previous year relevant to any assessment year commencing on or before the 1st day of April, 2014;] 1. Ins. by Act 8 of 2011, s. 4 (w.e.f. 1-6-2011). 2. Ins. by Act 13 of 2018, s. 5 (w.e.f. 1-4-2018). 3. Ins. by Act 23 of 2012, s. 5 (w.e.f. 1-4-2012). 4. Subs. by Act 17 of 2013, s. 5, for "sale of crude oil to any person" (w.e.f. 1-4-2014). 5. Ins. by Act 28 of 2016, s. 7 (w.e.f. 1-4-2016). 6. Ins. by Act 7 of 2017, s. 6 (w.e.f. 1-4-2018). 7. Ins. by Act 13 of 2018, s. 5 (w.e.f. 1-4-2019). 8. Ins. by Act 17 of 2013, s. 5 (w.e.f. 1-4-2014). 1[(50) any income arising from any specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 comes into force and chargeable to equalisation levy under that Chapter. Explanation.— For the purposes of this clause, "specified service" shall have the meaning assigned to it in clause (i) of section 164 of Chapter VIII of the Finance Act, 2016.] 1[(d) is credited or paid to any trust or institution registered under section 12AA or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10,] shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid or, as the case may be, of the previous year immediately following the expiry of the period aforesaid. 4. Clause (c) and (d) omitted by Act 32 of 1994, s. 17 (w.e.f. 1-4-1995). 5. Subs. by Act 29 of 1977, s. 29, for "the Explanation to, clause (vii) of sub-section (1) of section 9" (w.e.f. 1-4-1977). 6. Subs. by s. 29, ibid ., for "the Explanation to clause (vi) of sub- section (1) of section 9" (w.e.f 1-4-1977). 7. Ins. by Act 32 of 2003, s. 28 (w.e.f 1-4-2004). profession situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed place of profession, as the case may be, shall be computed under the head "Profits and gains of business or profession" in accordance with the provisions of this Act : Provided that no deduction shall be allowed,— (i) in respect of any expenditure or allowance which is not wholly and exclusively incurred for the business of such permanent establishment or fixed place of profession in India; or (ii) in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to its head office or to any of its other offices : 1[Provided further that the provisions of section 44BB shall not apply in respect of the income referred to in this section.] 5. The words, brackets and letter "other than a company referred to in clause (aa)" omitted by s. 59, ibid . (w.e.f. 1-4-2012). Earlier the words were inserted by Act 8 of 2011, s. 24 (w.e.f. 1-4-2011). 6. Subs. by Act 18 of 2008, s. 30, for "30th day of October" (w.e.f. 1-4-2008). 7. Ins. by Act 8 of 2011, s. 24 (w.e.f. -4-2011). 8. Subs. by Act 23 of 2012, s. 59, for "being a company, which" (w.e.f. 1-4-2012). Explanation 3.— For the purposes of this sub-section, the expression "travel to any foreign country" does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.] 1[ Explanation 4 . —For the purposes of this section "beneficial owner" in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset for the immediate or future benefit, direct or indirect, of himself or any other person. Explanation 5. — For the purposes of this section "beneficiary" in respect of an asset means an individual who derives benefit from the asset during the previous year and the consideration for such asset has been provided by any person other than such beneficiary.] 9. Ins. by Act 29 of 2006, s. 14 (w.e.f. 13-7-2006). foreign exchange outside India, has not been brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80-O in respect of such income or part thereof as is so received in, or brought into, India; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such income is so received in, or brought into, India; so, however, that the period from the 1st day of April, 1988 to the 30th day of September, 1991 shall be excluded in computing the period of four years.] 2[(a) "accountant" shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288; (aa) "buyer" with respect to— (i) sub-section (1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,— (A) a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or (B) a buyer in the retail sale of such goods purchased by him for personal consumption; 3* * * * * 4[(iii) sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section, but does not include,— (A) the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or (B) a local authority as defined in Explanation to clause (20) of section 10; or (C) a public sector company which is engaged in the business of carrying passengers.] 5* * * * *] 6[(b) "scrap" means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons;] 3. The first proviso omitted by Act 23 of 2004, s. 33 (w.e.f. 1-4-2005). 4. Ins. by Act 21 of 2006, s. 32 (w.e.f. 1-6-2006). 2 [10A. Special provision in respect of newly established undertakings in free trade zone, etc . — (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, 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, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive assessment years: 4[(3A) Notwithstanding anything contained in sub-section (3), where due to circumstances beyond the control of the person in receipt of the income, any income invested or deposited in accordance with the provisions of clause (b) of sub-section (2) cannot be applied for the purpose for which it was accumulated or set apart, the[5] [Assessing Officer ]may, on an application made to him in this behalf, allow such person to apply such income for such other charitable or religious purpose in India as is specified in the application by such person and as is in conformity with the objects of the trust; and thereupon the provisions of sub-section (3) shall apply as if the purpose specified by such person in the application under this sub-section were a purpose specified in the notice given to the[5] [Assessing Officer] under clause (a) ofsub-section (2): 1. Ins. by Act 20 of 2002, s. 7 (w.e.f. 1-4-2003). 2. Subs. by Act 19 of 1970, s. 5, for sub-section (3) (w.e.f. 1-4-1971). 3. Subs. by Act 11 of 1983, s. 39, for clause (b) (w.e.f. 1-4-1983). 4. Ins. by Act 41 of 1975, s. 4 (w.e.f. 1-4-1976). 5. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 1[Provided that the 2[Assessing Officer] shall not allow application of such income by way of payment or credit made for the purposes referred to in clause (d) of sub-section (3) of section 11:] (2) Every non-resident (not being a company) or a foreign company shall keep and maintain books of account and other documents in accordance with the provisions contained in section 44AA and get his accounts audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and furnish along with the return of income, the report of such audit in the prescribed form duly signed and verified by such accountant. Explanation .—For the purposes of this section,— (a) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; (b) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (c) "permanent establishment" shall have the same meaning as in clause (iiia) of section 92F.] 2[44DB. Special provision for computing deductions in the case of business reorganization of cooperative banks.— (1) The deduction under section 32, section 35D, section section 35DDA shall, in a case where business reorganisation of a co-operative bank has taken place during the financial year, be allowed in accordance with the provisions of this section. 35DD or (2) The amount of deduction allowable to the predecessor co-operative bank under section 32, section 35D, section 35DD or section DDA shall be determined in accordance with the formula— A X[ B] C 2[(1A) Without prejudice to the provisions of sub-section (1), any person, being an individual who is in receipt of income chargeable under the head "Salaries" may, at his option, furnish a return of his income for any previous year to his employer, in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified therein, and such employer shall furnish all returns of income received by him on or before the due date, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and manner as may be specified in that scheme, and in such case, any employee who has filed a return of his income to his employer shall be deemed to have furnisheda return of income under sub-section (1), and the provisions of this Act shall apply accordingly.] 3* * * * * 1[(13) Where in the assessment for any year, the deduction under section 80HHB or section 80HHC or section 80HHD or section 80HHE or section 80-O or section 80R or section 80RR or section 80RRA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of 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 and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80HHB or section 80HHC or section 80HHD or section section 80-O or section 80R or section 80RR or section 80RRA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into, India. 80HHE or (c) "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial yearimmediately preceding the financial year in which the goods of the nature specified in the Table in sub-section (1)[7] [are sold]. 1. Ins. by Act 18 of 1992, s. 79 (w.e.f. 1-4-1992). 2. Subs. by Act 23 of 2012, s. 81, for clause (a) (w.e.f. 1-7-2012). 3. Sub-clause (ii) omitted by Act 7 of 2017, s. 72 (w.e.f. 1-4-2017). 4. Ins. by s. 72, ibid . (w.e.f. 1-4-2017). 5. Clause (ab) omitted by s. 72, ibid. (w.e.f. 1-4-2017). 6. Subs. by Act 32 of 2003, s. 87, for clause (b) (w.e.f. 1-6-2003). 7. Subs. by Act 7 of 2017, s. 72, for "or sub-section (1D) are sold or services referred to in sub-section (1D) are provided" (w.e.f. 1-4-2017). 1 [206CA. Tax collection account number. —(1) Every person collecting tax in accordance with the provisions of section 206C, shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a tax collection account number. (2) Where a tax collection account number has been allotted to a person, such person shall quote such number— (a) in all challans for the payment of any sum in accordance with the provisions of sub-section (3) of section 206C; (b) in all certificates furnished under sub-section (5) of section 206C; (c) in all the returns delivered in accordance with the provisions of sub-section (5A) or subsection (5B) of section 206C to any income-tax authority; and (d) in all other documents pertaining to such transactions as may be prescribed in the interest of revenue:] 2[Provided that the provisions of this section shall not apply on or after the 1st day of October, 2004.] Provided further that where an undertaking initially located in any free trade zone or export processing zone is subsequently located in a special economic zone by reason of conversion of such free trade zone or export processing zone into a special economic zone, the period of ten consecutive assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the previous year in which the[3] [undertaking began to manufacture or produce such articles or things or computer software] in such free trade zone or export processing zone: 4* * * * * 5[Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be ninety per cent. of the profits and gains derived by an undertaking from the export of such articles or things or computer software:] Provided also that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the[6] [1st day of April, 2012] and subsequent years. 7[(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computing the total income of an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2003, in any special economic zone, shall be,— 3[Provided further that in case the trust or institution, which has invested or deposited its income in accordance with the provisions of clause (b) of sub-section (2), is dissolved, the[2] [Assessing Officer] may allow application of such income for the purposes referred to in clause (d) of sub-section (3) in the year in which such trust or institution was dissolved.] (4) For the purposes of this section "property held under trust" includes a business undertaking so held, and where a claim is made that the income of any such undertaking shall not be included in the total income of the persons in receipt thereof, the[2] [Assessing Officer] shall have power to determine the income of such undertaking in accordance with the provisions of this Act relating to assessment; and where any income so determined is in excess of the income as shown in the accounts of the undertaking, such excess shall be deemed to be applied to purposes other than charitable or religious purposes[4] *. 5[(4A) Sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) shall not apply in relation to any income of a trust or an institution, being profits and gains of business, unless the business is incidental to the attainment of the objectives of the trust or, as the case may be, institution, and separate books of account are maintained by such trust or institution in respect of such business.] - where A = the amount of deduction allowable to the predecessor co-operative bank if the business reorganisation had not taken place; B = the number of days comprised in the period beginning with the 1st day of the financial year and ending on the day immediately preceding the date of business reorganisation; and C = the total number of days in the financial year in which the business reorganisation has taken place. 1. Ins. by Act 14 of 2010, s. 17 (w.e.f. 1-4-2011). 2. Ins. by Act 22 of 2007, s. 15 (w.e.f. 1-4-2008). (3) The amount of deduction allowable to the successor co-operative bank under section 32, section 35D, section 35DD or section 35DDA shall be determined in accordance with the formula— A X[ B] C - where A = the amount of deduction allowable to the predecessor co-operative bank if the business reorganisation had not taken place; - B = the number of days comprised in the period beginning with the date of business reorganisation and ending on the last day of the financial year; and - C = the total number of days in the financial year in which the business reorganisation has taken place. 4[(1B) Without prejudice to the provisions of sub-section (1), any person, being a company or being a person other than a company, required to furnish a return of income under sub-section (1), may, at his option, on or before the due date, furnish a return of his income for any previous year in accordance with such scheme as may be specified by the Board in this behalf by notification in the Official Gazette and subject to such conditions as may be specified therein, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and in the manner as may be specified in that scheme, and in such case, the return of income furnished under such scheme shall be deemed to be a return furnished under sub-section (1), and the provisions of this Act shall apply accordingly.] 5[(1C) Notwithstanding anything contained in sub-section (1), the Central Government may, by notification in the Official Gazette, exempt any class or classes of persons from the requirement of furnishing a return of income having regard to such conditions as may be specified in that notification.] 6* * * * * 2[(14) Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year,[3] [credit for tax deducted or collected in accordance with the provisions of section 199 or, as the case may be, section 206C] has not been given on the ground that the certificate furnished under[4] [section 203 or section 206C] was not filed with the return and subsequently such certificate is produced before the Assessing Officer within two years from the end of the assessment year in which such income is assessable, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto: Provided that nothing contained in this sub-section shall apply unless the[5] [income from which the tax has been deducted or income on which the tax has been collected] has been disclosed in the return of income filed by the assessee for the relevant assessment year. 6[(14A) Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year, credit for income-tax paid in any country outside India or a specified terriotory outside India referred to in section 90, section 90A or section 91 has not been given on the ground that the payment of such tax was under dispute, and if subsequently such dispute is settled, and the assessee, within six months from the end of the month in which the dispute is settled, furnishes to the Assessing Officer evidence of settlement of dispute and evidence of payment of such tax along with an undertaking that no credit in respect of such amount has directly or indirectly been claimed or shall be claimed for any other assessment year, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto: 1. Ins. by Act 27 of 1999, s. 66 (w.e.f. 1-6-1999). Sub-section (13) was omitted by Act 4 of 1988, s. 61 (w.e.f. 1-4-1989) which was inserted by Act 25 of 1975, s. 24 (w.e.f. 1-4-1975). 2. Ins. by Act 20 of 2002, s. 62 (w.e.f. 1-6-2002). 3. Subs. by Act 21 of 2006, s. 39, for "credit for tax deducted in accordance with the provisions of section 199" (w.e.f. 1-4-2007). 4. Subs. by s. 39, ibid ., for "section 203" (w.e.f. 1-4-2007). 3. Section207 renumbered as sub-section (1) thereof by Act 23 of 2012, s. 82 (w.e.f. 1-4-2012). 4. Ins. by s. 82, ibid . (w.e.f. 1-4-2012). (b) is of the age of sixty years or more at any time during the previous year.] (i) hundred per cent. of profits and gains derived from the export of such articles or things or computer software for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, and thereafter, fifty per cent. of such profits and gains for further two consecutive assessment years, and thereafter; (ii) for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent. of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the "Special Economic Zone Re-investment Allowance Reserve Account") to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (1B): 1. Ins. by Act 28 of 2016, s. 7 (w.e.f. 1-6-2016). 2. Subs. by Act 10 of 2000. s. 6, for section 10A (w.e.f. 1-4-2001). 3. Subs. by Act 14 of 2001, s. 6, for "undertaking was first set up" (w.e.f. 1-4-2001). 6[(5) The forms and modes of investing or depositing the money referred to in clause (b) of subsection (2) shall be the following, namely:— (i) investment in savings certificates as defined in clause (c) of section 2 of the Government Savings Certificates Act, 1959 (46 of 1959), and any other securities or certificates issued by the Central Government under the Small Savings Schemes of that Government; (ii) deposit in any account with the Post Office Savings Bank; (iii) deposit in any account with a scheduled bank or a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank). Explanation .—In this clause, "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); (iv) investment in units of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963); (4) The provisions of section 35D, section 35DD or section 35DDA shall, in a case where an undertaking of the predecessor co-operative bank entitled to the deduction under the said section is transferred before the expiry of the period specified therein to a successor co-operative bank on account of business reorganisation, apply to the successor co-operative bank in the financial years subsequent to the year of business reorganisation as they would have applied to the predecessor co-operative bank, as if the business reorganisation had not taken place. - (5) For the purposes of this section,— (a) "amalgamated co-operative bank" means— (i) a co-operative bank with which one or more amalgamating co-operative banks merge; or (ii) a co-operative bank formed as a result of merger of two or more amalgamating co-operative banks; (b) "amalgamating co-operative bank" means— - (i) a co-operative bank which merges with another co-operative bank; or (ii) every co-operative bank merging to form a new co-operative bank; (c) "amalgamation" means the merger of an amalgamating co-operative bank or banks with an amalgamated co-operative bank, in such manner that— (3) If any person who[7] * has sustained a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Capital gains" and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73,[8] [or subsection (2) of section 73A] or[9] [sub-section (1) or sub-section (3) of section 74],[10] [or sub-section (3) of section 74A], he may furnish, within the time allowed under sub-section (1),[11] * a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1). 1. Ins. by Act 20 of 2015, s. 35 (w.e.f. 1-4-2016). 2. Ins. by Act 20 of 2002, s. 59 (w.e.f. 1-4-2002).Earlier sub-section (1A) was amended by 13 of 1963, s. 8 (w.e.f. 14-1962). Earlier amended by 19 of 1970, s. 20 (w.e.f. 1-4-1971). 3. Explanation omitted by Act 67 of 1984, s. 25 (w.ef. 1-4-1985). 4. Ins. by Act 32 of 2003, s. 62 (w.e.f. 1-4-2003). 5. Ins. by Act 8 of 2011, s. 24 (w.e.f. 1-6-2011). 6. Sub-section (2) omittedby Act 4 of 1988, s. 42 (w.e.f. 1-4-1989). 7. The words "has not been served with a notice under sub-section (2)" omitted by Act 4 of 1988, s. 42 (w.e.f. 1-4-1989). 8. Ins. by Act 28 of 2016, s. 67 (w.e.f. 1-4-2016). 5. Subs. by Act 21 of 2006, s. 39, for "income from which the tax has been deducted" (w.e.f. 1-4-2007). 6. Ins. by Act 7 of 2017, s. 63 (w.e.f. 1-4-2018). Provided that the credit of tax which was under dispute shall be allowed for the year in which such income is offered to tax or assessed to tax in India:] (15) Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being land or building or both, is computed by taking the full value of the consideration received or accruing as a result of the transfer to be the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in accordance with sub-section (1) of section 50C, and subsequently such value is revised in any appeal or revision or reference referred to in clause (b) of sub-section (2) of that section, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the full value of the consideration to be the value as so revised in such appeal or revision or reference; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order revising the value was passed in that appeal or revision or reference.] 3. The Explanation numbered as Explanation 1 by Act 23 of 2012, s. 88 (w.e.f. 1-6-2003). 4. Ins. by s. 88, ibid. (w.e.f. 1-6-2003). 5. Ins. by s. 89, ibid. (w.e.f. 1-7-2012). (v) investment in any security for money created and issued by the Central Government or a State Government; 1. Ins. byAct 20 of 2002, s. 7 (w.e.f. 1-4-2003). 2. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 3. Ins. by Act 32 of 2003, s. 10 (w.e.f. 1-4-2003). 4. The words brackets and figures "and accordingly chargeable to tax within the meaning of sub-section (3)" omitted by Act 19 of 1970, s. 5 (w.e.f. 1-4-1971). 5. Subs. by Act 49 of 1991, s. 6, for sub-section (4A) (w.e.f. 1-4-1992). 6.Ins. by Act 11 of 1983, s. 6 (w.e.f. 1-4-1984). (vi) investment in debentures issued by, or on behalf of, any company or corporation both the principal whereof and the interest whereon are fully and unconditionally guaranteed by the Central Government or by a State Government; (vii) investment or deposit in any[1] [public sector company]: 2[Provided that where an investment or deposit in any public sector company has been made and such public sector company ceases to be a public sector company,— (A) such investment made in the shares of such company shall be deemed to be an investment made under this clause for a period of three years from the date on which such public sector company ceases to be a public sector company; (i) all the assets and liabilities of the amalgamating co-operative bank or banks immediately before the merger (other than the assets transferred, by sale or distribution on winding up, to the amalgamated co-operative bank) become the assets and liabilities of the amalgamated co-operative bank; amalgamated co-operative bank) become the assets and liabilities of the amalgamated (ii) the members holding seventy-five per cent or more voting rights in the amalgamating co-operative bank become members of the amalgamated co-operative bank; and (iii) the shareholders holding seventy-five per cent or more in value of the shares in the amalgamating co-operative bank (other than the shares held by the amalgamated co-operative bank or its nominee or its subsidiary, immediately before the merger) become shareholders of the amalgamated co-operative bank; (d) "business reorganisation" means the reorganisation of business involving the amalgamation or demerger of a co-operative bank; (e) "co-operative bank" shall have the meaning assigned to it in clause (cci) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (f) "demerger" means the transfer by a demerged co-operative bank of one or more of its undertakings to any resulting co-operative bank, in such manner that— (i) all the assets and liabilities of the undertaking or undertakings immediately before the transfer become the assets and liabilities of the resulting co-operative bank; 9. Subs. by Act 11 of 1987, s. 74, for "sub-section (1) of section 74" (w.e.f. 1-4-1988). 10. Ins. by Act 20 of 1974, s. 10 (w.e.f. 1-4-1975). 11. The words "or by the thirty-first day of July of the assessment year relevant to the previous year during which the loss was sustained" by Act 4 of 1988, s. 42 (w.e.f. 1-4-1989). 1[2[(4) Anyperson who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.] 1[(16) Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being a transfer by way of compulsory acquisition under any law, or a transfer, the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, is computed by taking the compensation or consideration as referred to in clause (a) or, as the case may be, the compensation or consideration enhanced or further enhanced as referred to in clause (b) of sub-section (5) of section 45, to be the full value of consideration deemed to be received or accruing as a result of the transfer of the asset and subsequently such compensation or consideration is reduced by any court, Tribunal or other authority, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the compensation or consideration as so reduced by the court, Tribunal or any other authority to be the full value of consideration; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order reducing the compensation was passed by the court, Tribunal or other authority. (17) Where a deduction has been allowed to an assessee in any assessment year under section 80RRB in respect of any patent, and subsequently by an order of the Controller or the High Court under the Patents Act, 1970 (39 of 1970),— 3. The proviso added by s. 7, ibid ., (w.e.f. 9-9-1972). 4. Sub-section (3) added by Act 4 of 1988, s. 123 (w.e.f. 1-4-1988). THE FIRST SCHEDULE INSURANCE BUSINESS [ See section 44] A.—Life insurance business (B) such other investment or deposit shall be deemed to be an investment or deposit made under this clause for the period up to the date on which such investment or deposit becomes repayable by such company;] (viii) deposits with or investment in any bonds issued by a financial corporation which is engaged in providing long-term finance for industrial development in India and[3] [which is eligible for deduction under clause (viii) of sub-section (1) of section 36]; (ix) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and[3] [which is eligible for deduction under clause (viii) of sub-section (1) of section 36]; 4[(ixa) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for urban infrastructure in India. Explanation .—For the purposes of this clause,— (a) "long-term finance" means any loan or advance where the terms under which moneys are loaned or advanced provide for repayment along with interest thereof during a period of not less than five years; (b) "public company" shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956); (ii) the assets and the liabilities are transferred to the resulting co-operative bank at values (other than change in the value of assets consequent to their revaluation) appearing in its books of account immediately before the transfer; (iii) the resulting co-operative bank issues, in consideration of the transfer, its membership to the members of the demerged co-operative bank on a proportionate basis; (iv) the shareholders holding seventy-five per cent or more in value of the shares in the demerged co-operative bank (other than shares already held by the resulting bank or its nominee or its subsidiary immediately before the transfer), become shareholders of the resulting cooperative bank, otherwise than as a result of the acquisition of the assets of the demerged cooperative bank or any undertaking thereof by the resulting co-operative bank; (v) the transfer of the undertaking is on a going concern basis; and (vi) the transfer is in accordance with the conditions specified by the Central Government, by notification in the Official Gazette, having regard to the necessity to ensure that the transfer is for genuine business purposes; (g) "demerged co-operative bank" means the co-operative bank whose undertaking is transferred, pursuant to a demerger, to a resulting bank; (h) "predecessor co-operative bank" means the amalgamating co-operative bank or the demerged co-operative bank, as the case may be; 3[(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]] (i) the patent was revoked, or (ii) the name of the assessee was excluded from the patents register as patentee in respect of that patent, the deduction from the income by way of royalty attributable to the period during which the patent had been revoked or the period for which the assessee's name was excluded as patentee in respect of that patent, shall be deemed to have been wrongly allowed and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such order of the Controller referred to in clause (b) of sub-section (1), or the High Court referred to in clause (i) of sub-section (1) of section 2, of the Patents Act, 1970 (39 of 1970), as the case may be, was passed.] 2[ Explanation .—For the purposes of this section,— (a) "additional compensation" shall have the meaning assigned to it in clause (1) of the Explanation to sub-section (2) of section 54; 3. When certificate may be executed. —No step in execution of a certificate shall be taken until the period of fifteen days has elapsed since the date of the service of the notice required by the preceding rule: Provided that, if the Tax Recovery Officer is satisfied that the defaulter is likely to conceal, remove or dispose of the whole or any part of such of his movable property as would be liable to attachment in execution of a decree of a civil court and that the realisation of the amount of the certificate would in consequence be delayed or obstructed, he may at any time direct, for reasons to be recorded in writing, an attachment of the whole or any part of such property: Provided further that if the defaulter whose property has been so attached furnishes security to the satisfaction of the Tax Recovery Officer, such attachment shall be cancelled from the date on which such security is accepted by the Tax Recovery Officer. 1. Subs. by Act 4 of 1988, s. 124, for " See section 222" (w.e.f. 1-4-1989). 2. Subs. by s. 124, ibid ., for clause (a) (w.e.f. 1-4-1989). (c) "urban infrastructure" means a project for providing potable water supply, sanitation and sewerage, drainage, solid waste management, roads, bridges and flyovers or urban transport;] (x) investment in immovable property. Explanation .—"Immovable property" does not include any machinery or plant (other than machinery or plant installed in a building for the convenient occupation of the building) even though attached to, or permanently fastened to, anything attached to the earth;] 1. Subs. by Act 3 of 1989, s. 5, for "Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956)" (w.e.f. 1-4-1989). 2. Ins. by Act 10 of 2000, s. 8 (w.e.f. 1-4-2001). 3. Subs. by s. 8, ibid ., for "which is approved by the Central Government of the purposes of clause (viii) of sub-section (10) of section 36" (w.e.f. 1-4-2001). 4. Ins. by s. 8, ibid . (w.e.f. 1-4-2001). 1[(xi) deposits with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964);] 2[(xii) any other form or mode of investment or deposit as may be prescribed.] (i) "successor co-operative bank" means the amalgamated co-operative bank or the resulting bank, as the case may be; (j) "resulting co-operative bank" means— (i) one or more co-operative banks to which the undertaking of the demerged co-operative bank is transferred in a demerger; or (ii) any co-operative bank formed as a result of demerger.] E. — Capital gains 4[(4B) The chief executive officer (whether such chief executive officer is known as Secretary or by any other designation) of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).] - 5[(4C) Every— (a)[6] [researchassociation] referred to in clause (21) of section 10; (b) news agency referred to in clause (22B) of section 10; (c) association or institution referred to in clause (23A) of section 10; 7[(ca)person referred to in clause (23AAA) of section 10;] (d) institution referred to in clause (23B) of section 10; (b) "additional consideration", in relation to the transfer of any capital asset the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, means the difference between the amount of consideration for such transfer as enhanced by any court, tribunal or other authority and the amount of consideration which would have been payable if such enhancement had not been made.] 1. Ins. by Act 32 of 2003, s. 66 (w.e.f. 1-4-2004). 2. Ins. by Act 19 of 1978, s. 19 (w.e.f. 1-4-1974). 3. Restored by Act 3 of 1989, s. 95 (1-4-1989). 4. Subs. by s. 54, ibid ., for "Income-tax Officer" (w.e.f. 1-4-1988). 3[(6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year. (7) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) of section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than clause (1) and clause (23C) thereof] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year.] (e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in[8] [sub-clause (iiiab) or][9] [sub-clause (iiiad) or sub-clause (vi)] or any hospital or other medical institution referred to in[8] [sub-clause (iiiac) or][10] [sub-clause (iiiae) or sub-clause (via)] of clause (23C) of section 10; 11[(ea) Mutual Fund referred to in clause (23D) of section 10; (eb) securitisation trust referred to in clause (23DA) of section 10; 7[(eba) InvestorProtection Fund referred to in clause (23EC) or clause (23ED) of section 10; (ebb) Core Settlement Guarantee Fund referred to in clause (23EE) of section 10;] (ec) venture capital company or venture capital fund referred to in clause (23FB) of section 10;] 1. Subs. by Act 4 of 1988, s. 42, for sub-sections (4) and (4a) (w.e.f. 1-4-1989). 2. Subs. by Act 28 of 2016, s. 67, for sub-section (4) (w.e.f. 1-4-2017). Earlier sub-section (4) was substituted by Act 4 of 1988, s. 42 (w.e.f. 1-4-1989). 3. Subs. by Act 3 of 1989, s. 20, for sub-section (4A) (w.e.f. 1-4-1989). Original sub-section (4A) was inserted by Act 19 of 1970, s. 20 (w.e.f. 1-4-1971) and substituted by Act 16 of 1972, s. 26 (w.e.f. 1-4-1973). 4. Ins. by Act 29 of 1978, s. 2 (w.e.f. 1-4-1979). Provided that where in computing the total income of any undertaking, being a Developer for any assessment year, its profits and gains had not been included by application of the provisions of sub-section (13) of sectopm 80-IA, the undertaking being the Developer shall be entitled to deduction referred to in this section only for the unexpired period of ten consecutive assessment years and thereafter it shall be eligible for deduction from income as provided in sub-section (1) or sub-section (2), as the case may be: assessment year, its profits and gains had not been included by application of the provisions of Provided further that in a case where an undertaking, being a Developer who develops a Special Economic Zone on or after the 1st day of April, 2005 and transfers the operation and maintenance of such Special Economic Zone to another Developer (hereafter in this section referred to as the transferee Developer), the deduction under sub-section (1) shall be allowed to such transferee Developer for the remaining period in the ten consecutive assessment years as if the operation and maintenance were not so transferred to the transferee Developer. (3) The provisions of sub-section (5) and sub-sections (7) to (12) of section 80-JIA shall apply to the Special Economic Zones for the purpose of allowing deductions under sub-section (1). 3. Conditions for approval. — In order that a superannuation fund may receive and retain approval, it shall satisfy the conditions set out below and any other conditions which the Board may, by rules, prescribe— (a) the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in India, and not less than ninety per cent of the employees shall be employed in India; (b) the fund shall have for its sole purpose the provision of annuities for employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement, or for the widows, children or dependants of persons who are or have been such employees on the death of those persons ; (c) the employer in the trade or undertaking shall be a contributor to the fund ; and (d) all annuities, pensions and other benefits granted from the fund shall be payable only in India. 1. Subs. by Act 11 of 1987, s. 74, for "206(2)" (w.e.f. 1-6-1987). 2. Subs. by Act 4 of 1988, s. 2, for "Commissioner" (w.e.f. 1-4-1988). 3. Subs. by Act 25 of 2014, s. 4 for "Chief Commissioner" (w.r.e.f. 1-6-2013). 4. Subs. by s. 4, ibid ., for "Commissioner" (w.r.e.f. 1-6-2013). 4 [12. Income of trusts or institutions from contributions. —5[(1)] Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly.] 6[(2) The value of any services, being medical or educational services, made available by any charitable or religious trust running a hospital or medical institution or an educational institution, to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13, shall be deemed to be income of such trust or institution derived from property held under trust wholly for charitable or religious purposes during the previous year in which such services are so provided and shall be chargeable to income-tax notwithstanding the provisions of sub-section (1) of section 11. 5. Ins. by Act 20 of 2002, s. 59 (w.e.f. 1-4-2003). 6. Subs. by Act 14 of 2010, s. 32, for "scientific research association" (w.e.f. 1-4-2011). 7. Ins. by Act 7 of 2017, s. 55 (w.e.f. 1-4-2018). 8. Ins. by Act 20 of 2015, s. 35 (w.e.f. 1-4-2016). 9. Subs. by Act 29 of 2006, s. 12, for "sub-clause (vi)" (w.r.e.f. 1-4-2006). 10. Subs. by s. 12, ibid ., for "sub-clause (via)" (w.e.f. 1-4-2006). 11. Ins. by Act 25 of 2014, s. 49 (w.e.f. 1-4-2015). (f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10; 1[(fa) Board orAuthority referred to in clause (29A) of section 10;] 2[(g) body or authority or Board or Trust or Commission (by whatever name called) referred to in clause (46) of section 10; (h) infrastructure debt fund referred to in clause (47) of section 10,] Explanation.— For the purposes of this section, "Developer" and "Special Economic Zone" shall have the same meanings respectively as assigned to them in clauses (g) and (za) of section 2 of the Special Economic Zones Act, 2005.] 3[ 80-IAC. Special provision in respect of specified business. —(1) Where the gross total income of an assessee, being an eligible start-up, includes any profits and gains derived from 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 one hundred per cent of the profits and gains derived from such business for three consecutive assessment years. (2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him for any three consecutive assessment years out of[4] [seven years] beginning from the year in which the eligible start-up is incorporated. - (3) This section applies to a start-up which fulfils the following conditions, namely:— (i) it is not formed by splitting up, or the reconstruction, of a business already in existence: 1. Ins. by Act 28 of 2005, s. 27 and the Second Schedule (w.e.f. l0-2-2006). 2. Ins. by Act 28 of 2016, s. 41 (w.e.f. 1-4-2017). 3. Ins. by s. 42, ibid . (w.e.f. 1-4-2017). 4. Subs. by Act 7 of 2017, s. 36, for "five years" (w.e.f. 1-4-2018). 3. Conditions for approval. —In order that a gratuity fund may receive and retain approval, it shall satisfy the conditions set out below and any other conditions which the Board may, by rules, prescribe— (a) the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in India, and not less than ninety per cent of the employees shall be employed in India ; (b) the fund shall have for its sole purpose the provision of a gratuity to employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement or on termination of their employment after a minimum period of service specified in the rules of the fund or to the widows, children or dependants of such employees on their death ; - (c) the employer in the trade or undertaking shall be a contributor to the fund ; and - (d) all benefits granted by the fund shall be payable only in India. Explanation .—For the purposes of this sub-section, the expression "value" shall be the value of any benefit or facility granted or provided free of cost or at concessional rate to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13.] 7[(3) Notwithstanding anything contained in section 11, any amount of donation received by the trust or institution in terms of clause (d) of sub-section (2) of section 80G[8] [in respect of which accounts of income and expenditure have not been rendered to the authority prescribed under clause ( v sub-section (5C) of that section, in the manner specified in that clause, or] which has been utilised for purposes other than providing relief to the victims of earthquake in Gujarat or which remains unutilised in terms of sub-section (5C) of section 80G and not transferred to the Prime Minister's National Relief Fund on or before the 31st day of March,[9] [2004] shall be deemed to be the income of the previous year and shall accordingly be charged to tax.] income and expenditure have not been rendered to the authority prescribed under clause (v) of 1. Ins. by Act 21 of 1984, s. 4 (w.e.f. 1-4-1985). 2. Ins. by Act 3 of 1989, s. 5 (w.e.f. 1-4-1989). 3. Ins. by Act 25 of 2014, s. 7 (w.e.f. 1-4-2015). shall, if the total income in respect of which such[3] [research association], news agency, association or institution,[ 1] [person or] fund or trust or university or other educational institution or any hospital or other medical institution or trade union[2] [or body or authority or Board or Trust or Commission or infrastructure debt fund][4] [or Mutual Fund or securitisation trust or venture capital company or venture capital fund] is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).] 5[(4D) Every university, college or other institution referred to in clause (ii) and clause (iii) of subsection (1) of section 35, which is not required to furnish return of income or loss under any other provision of this section, shall furnish the return in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).] Provided that this condition shall not apply in respect of a start-up which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as referred to in section 33B, in the circumstances and within the period specified in that section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation 1.—For the purposes of this clause, any machinery or plant which was used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if all the following conditions are fulfilled, namely:— (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (b) such machinery or plant is imported into India; (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee. 3. Lead, Zinc, Copper, Cadmium, Arsenic, Antimony, Bismuth, Cobalt, Nickel, Molybdenum, and Uranium minerals, and Gold and Silver, Arsinopyrite, Chalcopyrite, Pyrite, Pyphrotite and Pentalandite. 4. Chromium, Osmiridium, Platinum and Nickel minerals. 5. Kyanite, Sillimanite, Corrundum, Dumortierite and Topaz. 6. Gold, Silver, Tellurium, Selenium and Pyrite. 4[(4E) Every business trust, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of its income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply if it were a return required to be furnished under sub-section (1).] 6[(4F)Every investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).] 7[(5) If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before[8] * the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.] 1. Ins. by Act 7 of 2017, s. 55 (w.e.f. 1-4-2018). 2. Ins. by Act 8 of 2011, s. 24 (w.e.f. 1-6-2011). 3. Subs. by Act 14 of 2010, s. 32, for "scientific research association" (w.e.f. 1-4-2011). 4. Ins. by Act 25 of 2014, s. 49 (w.e.f. 1-4-2015). 5. Ins. by Act 29 of 2006, s. 12 (w.e.f. 1-4-2006). 6. Ins. by Act 20 of 2015, s. 35 (w.e.f. 1-4-2016). Explanation 2.—Where in the case of a start-up, any machinery or plant or any part thereof previously used for any purpose is transferred to a new business and the total value of the machinery or plant or part so transferred does not exceed twenty per cent of the total value of the machinery or plant used in the business, then, for the purposes of clause (ii) of this sub-section, the condition specified therein shall be deemed to have been complied with. (4) The provisions of sub-section (5) and sub-sections (7) to (11) of section 80-IA shall apply to the start-ups for the purpose of allowing deductions under sub-section (1). Explanation .—For the purposes of this section,— 1[(i) "eligible business" means a business carried out by an eligible start up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation;] (ii) "eligible start-up" means a company or a limited liability partnership engaged in eligible business which fulfils the following conditions, namely:— (a) it is incorporated on or after the 1st day of April, 2016 but before the 1st day of April,[2] [2021]; (b) the total turnover of its business does not exceed twenty-five crore rupees[3] [in the previous year relevant to the assessment year for which deduction under sub-section (1) is claimed]; and 7. Subs. by Act 28 of 2016, s. 67, for sub-section (5) (w.e.f. 1-4-2017). Earlier sub-section (5) was substituted by Act 4 of 1988, s. 42 (w.e.f. 1-4-1988). 8. The words "the expiry of one year from" omitted by Act 7 of 2017, s. 55 (w.e.f. 1-4-2018). 1[(6) The prescribed form of the returns referred to 2[in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142] shall, in such cases as may be prescribed, require the assessee to furnish the particulars of income exempt from tax,[3] [assets of the prescribed nature and[4] [value, held by him as a beneficial owner or otherwise in which he is a beneficiary], his bank account and credit card held by him], expenditure exceeding the prescribed limits incurred by him under prescribed heads and such other out-goings as may be prescribed. (c) it holds a certificate of eligible business from the Inter-Ministerial Board of Certification as notified in the Official Gazette by the Central Government; (iii) "limited liability partnership" means a partnership referred to in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009).] 1. Subs. by Act 13 of 2018, s. 28, for clause (i) (w.e.f. 1-4-2018). 2. Subs. by s. 28, ibid ., for "2019" (w.e.f. 1-4-2018). 3. Subs. by s. 28, ibid ., for "in any of the previous years beginning on or after the 1st day of April, 2016 and ending on the 31st day of March, 2021" (w.e.f. 1-4-2018). 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings. —(1) Where the gross total income of an assessee includes any profits and gains derived from any business referred to in sub-sections (3) to[1] [(11), (11A) and (11B)] (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 from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section. (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely:— (6A) Without prejudice to the provisions of sub-section (6), the prescribed form of the returns referred to[5] [in[6] * this section, and in clause (i) of sub-section (1) of section 142]shall, in the case of an assessee engaged in any business or profession, also require him to furnish[7] [the report of any audit[8] [referred to in section 44AB,or, where the report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report]], the particulars of the location and style of the principal place where he carries on the business or profession and all the branches thereof, the names and addresses of his partners, if any, in such business or profession and, if he is a member of an association or body of individuals, the names of the other members of the association or the body of individuals and the extent of the share of the assessee and the shares of all such partners or the members, as the case may be, in the profits of the business or profession and any branches thereof.] 9* * * * * 10[(8) (a) 11[Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then [whether or not the (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 industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose; (iii) it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India: Provided that the condition in this clause shall, in relation to a small scale industrial undertaking or an industrial undertaking referred to in sub-section (4) shall apply as if the words "not being any article or thing specified in the list in the Eleventh Schedule" had been omitted. Explanation 1.— For the purposes of clause (ii), any machinery or plant which was used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled, namely:— (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; 12[Assessing Officer] has extended the date for furnishing the return under sub-section (1) or sub-section (2)], the assessee shall be liable to pay simple interest at[13] [fifteen per cent.] per annum, reckoned from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source: Provided that the[12] [Assessing Officer] may, in such cases and under such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section. Explanation 1. —For the purposes of this sub-section, "specified date", in relation to a return for an assessment year, means,— (a) in the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year or the 30th day of June of the assessment year, whichever is later; 1. Subs. by Act 41 of 1975, s. 38, for sub-section (6) (w.e.f. 1-4-1976). (b) such machinery or plant is imported into India from any country outside India; and (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee. Explanation 2.— Where in the case of an industrial undertaking, any machinery or plant or any part thereof previously used for any purpose is transferred to a new business and the total value of the machinery or plant or part so transferred does not exceed twenty per cent. of the total value of the machinery or plant used in the business, then, for the purposes of clause (ii) of this sub-section, the condition specified therein shall be deemed to have been complied with; (iv) in a case where the industrial undertaking manufactures or produces articles or things, the undertaking employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power. 1. Subs. by Act 23 of 2004, s. 18, for "(11) and (11A)" (w.e.f. 1-4-2005). Earlier "(3) to (11) and (11A)" subs. by Act 14 of 2001, s. 45 (w.e.f. 1-4-2002). 2. Subs. by Act 4 of 1988, s. 42, for "in sub-sections (1), (2) and (3)" (w.e.f. 1-4-1989). 3. Subs. by Act 20 of 2015, s. 35, for "assets of the prescribed nature, value and belonging to him" (w.e.f. 1-4-2016). 4. Subs. by Act 27 of 1999, s. 62, for "and value and belonging to him" (w.e.f. 1-6-1999). 5. Subs. by Act 4 of 1988, s. 42, for "in sub-sections (1), (2) and (3)"(w.e.f. 1-4-1989). 6. The words "sub-sections (1) and (3) of" omitted by Act 22 of 1995, s. 29 (w.e.f. 1-7-1995). 7. Ins. by Act 26 of 1988, s. 35 (w.e.f. 1-4-1989). 8. Subs. by Act 22 of 1995, s. 29, for "obtained under section 44AB" (w.e.f. 1-7-1995). 9. Sub-section (7) omitted by Act 4 of 1988, s. 42 (w.e.f. 1-4-1989). 10. Subs. by Act 42 of 1970, s. 26, for sub-section (8) (w.e.f. 1-4-1971). Earlier sub-section (8) was inserted by Act 13 of 1963, s. 8 (w.e.f. 28-4-1963). 11. Subs. by Act 16 of 1972, s. 26, for the portion beginning with "Where the return" and ending with "under this subsection" (w.e.f. 1-4-1972). 12. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 13. Subs. by Act 67 of 1984, s. 25, for "twelve per cent." (w.e.f. 1-10-1984). (b) in the case of every other assessee, the 30th day of June of the assessment year.] (3) The amount of deduction in the case of an industrial undertaking shall be twenty-five per cent. (or thirty per cent. where the assessee is a company), of the profits and gains derived from such industrial undertaking for a period of ten consecutive assessment years (or twelve consecutive assessment years where the assessee is a co-operative society) beginning with the initial assessment year subject to the fulfilment of the following conditions, namely:— (i) it begins to manufacture or produce, articles or things or to operate such plant or plants at any time during the period beginning from the 1st day of April, 1991 and ending on the 31st day of March, 1995 or such further period as the Central Government may, by notification in the Official Gazette, specify with reference to any particular undertaking; (ii) where it is an industrial undertaking being a small scale industrial undertaking, it begins to manufacture or produce articles or things or to operate its cold storage plant [not specified in sub-section (4) or sub-section (5)] at any time during the period beginning on the 1st day of April, 1995 and ending on the[1] [31st day of March, 2002]. manufacture or produce articles or things or to operate its cold storage plant [not specified in 1[ Explanation 2. —Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section.] 2[(b) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264[3] [or an order of the Settlement Commission under sub-section (4) of section 245D], the amount of tax on which interest was payable under this sub-section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and— (i) in a case where the interest is increased, the[4] [Assessing Officer] shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.]] 5 [(c) The provisions of this sub-section shall apply in respect of the assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references therein to the other provisions of this Act shall be construed as references to the said provisions as they were applicable to the relevant assessment year.] (4) The amount of deduction in the case of an industrial undertaking in an industrially backward State specified in the Eighth Schedule shall be hundred per cent of the profits and gains derived from such industrial undertaking 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 derived from such industrial undertaking: Provided that the total period of deduction does not exceed ten consecutive assessment years (or twelve consecutive assessment years where the assessee is a co-operative society) subject to fulfilment of the condition that it begins to manufacture or produce articles or things or to operate its cold storage plant or plants during the period beginning on the 1st day of April, 1993 and ending on the[2] [31st day of March, 2004]: Provided further that in the case of such industries in the North-Eastern Region, as may be notified by the Central Government, the amount of deduction shall be hundred per cent. of profits and gains for a period of ten assessment years, and the total period of deduction shall in such a case not exceed ten assessment years: 3[Provided also that no deduction under this sub-section shall be allowed for the assessment year beginning on the 1st day of April, 2004 or any subsequent year to any undertaking or enterprise referred to in sub-section (2) of section 80-IC:] 6[(9) Where the 4[Assessing Officer] considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the[4] [Assessing Officer] may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return: Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the[4] [Assessing Officer] may condone the delay and treat the return as a valid return. Explanation .—For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely:— (a) the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in; 7* * * * * 4[Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the provisions of the first proviso shall have effect as if for the figures, letters and words "31st day of March, 2004", the figures, letters and words[5] [31st day of March, 2012] had been substituted: Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in the State of Jammu and Kashmir which is engaged in the manufacture or production of any article or thing specified in Part C of the Thirteenth Schedule.] 1. Subs. by Act 10 of 2000, s. 39, for "31st day of March, 2000" (w.e.f. 1-4-2001). 2. Subs. by Act 20 of 2002, s. 34, for "31st day of March, 2002" (w.e.f. 1-4-2003). 3. Ins. by Act 32 of 2003, s. 39 (w.e.f. 1-4-2004). 4. Subs. by Act 23 of 2004, s. 18, for the proviso (w.e.f. 1-4-2005). 5. Subs. by Act 22 of 2007, s. 29, for "31st day of March, 2007" (w.e.f. 1-4-2008). (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,— 1. Subs. by Act 67 of 1984, s. 25, for Explanation2 (w.e.f. 1-4-1985). Earlier the Explanation was renumbered as Explanation2 thereof by Act 16 of 1972, s. 26 (w.e.f. 1-4-1971). 2. Subs. by Act 67 of 1984, s. 25, for clause (b) (w.e.f. 1-4-1985). 3. Ins. by Act 4 of 1988, s. 126 (w.e.f. 1-4-1989). 4. Subs. by s. 2, ibid .,for "Income-tax Officer" (w.e.f. 1-4-1988). 5. Ins. by s. 42, ibid . (w.e.f. 1-4-1989). 6. Ins. by Act 44 of 1980, s. 24 (w.e.f. 1-9-1980). 7. Clause (aa) omitted by Act 28 of 2016, s. 67 (w.e.f. 1-4-2017). Earlier clause (aa) omitted by Act 17 of 2013, s. 36 (w.e.f. 1-6-2013). (b) the return is accompanied by a statement showing the computation of the tax payable on the basis of the return; 1[(bb) the return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report;] (c) the return is accompanied by proof of— (i) the tax, if any, claimed to have been[2] [deducted or collected at source][3] * and the advance tax and tax on self-assessment, if any, claimed to have been paid: 4[Provided that where the return is not accompanied by proof of the tax, if any, 5[claimed to have been deducted or collected at source], the return of income shall not be regarded as defective if— (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): 6 [(a) a certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing his return of income;] (b) such certificate is produced within a period of two years specified under sub-section (14) of section 155;] (ii) the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974); (d) where regular books of account are maintained by the assessee, the return is accompanied by copies of— (i) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet; (ii) in the case of a proprietary business or profession, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals; (e) where the accounts of the assessee have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the[7] [auditor's report and, where an audit of cost accounts of the assessee has been conducted under section 233B of the Companies Act, 1956 (1 of 1956), also the report under that section]; 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— (f) where regular books of account are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.] 8* * * * * 9* * * * * 1. Subs. by Act 22 of 1995, s. 29, for clause (bb) (w.e.f. 1-7-1995). Earlier clause (bb) was inserted by Act 26 of 1988, s. 35 (w.e.f. 1-4-1989). 2. Subs. by Act 21 of 2006, s. 31, for "deducted at source" (w.e.f. 1-4-2007). 3. The words "before the 1st day of April, 2008" omitted by Act 18 of 2008, s. 30 (w.e.f. 1-4-2008). 4. Ins. by Act 20 of 2002, s. 59 (w.e.f. 1-6-2002). 5. Subs. by Act 21 of 2006, s. 31, for "claimed to have been deducted at source" (w.e.f. 1-4-2007). 6. Subs. by s. 31, ibid ., for clause (a) (w.e.f. 1-4-2018). 7. Subs. by Act 32 of 1985, s. 29, for "auditor's report" (w.e.f. 1-4-1985). (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: 1. Subs. by Act 20 of 2002, s. 34, for "31st day of March, 2002" (w.e.f. 1-4-2003). 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; 1. Ins. by Act 20 of 2002, s. 34 (w.e.f. 1-4-2003). (b) the deduction under clause (a) shall be allowable only if— (i) such multiplex theatre is constructed at any time during the period beginning on the 1st day of April, 2002 and ending on the 31st day of March, 2005; (ii) the business of the multiplex theatre 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 any building or of any machinery or of plant previously used for any purpose; (iii) the assessee furnishes alongwith the return of income, the report of an audit in such form and containing such particulars as may be prescribed and duly signed and verified by an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed. (7B) The amount of deduction in the case of any convention centre shall be— (a) fifty per cent of the profits and gains derived, by the assessee from the business of building, owning and operating a convention centre, for a period of five consecutive years beginning from the initial assessment year; (b) the deduction under clause (a) shall be allowable only if— (i) such convention centre is constructed at any time during the period beginning on the 1st day of April, 2002 and ending on the 31st day of March, 2005; (ii) the business of the convention centre 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 any building or of any machinery or plant previously used for any purpose; (iii) the assessee furnishes alongwith the return of income, the report of an audit in such form and containing such particulars as may be prescribed, and duly signed and verified by an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed.] (8) The amount of deduction in the case of any company carrying on scientific research and development shall be hundred per cent of the profits and gains of such business for a period of five assessment years beginning from the initial assessment year if such company— (a) is registered in India; (b) has the main object of scientific and industrial research and development; (c) is for the time being approved by the prescribed authority at any time before the 1st day of April, 1999. 1[(8A) The amount of deduction in the case of any company carrying on scientific research and development shall be hundred per cent of the profits and gains of such business for a period of ten consecutive assessment years, beginning from the initial assessment year, if such company— 1. Ins. by Act 10 of 2000, s. 39 (w.e.f. 1-4-2001). (i) is registered in India; (ii) has its main object the scientific and industrial research and development; (iii) is for the time being approved by the prescribed authority at any time after the 31st day of March, 2000 but before the[1] [1st day of April, 2007]; (iv) fulfils such other conditions as may be prescribed.] 2[(9) The amount of deduction to an undertaking shall be hundred per cent of the profits for a period of seven consecutive assessment years, including the initial assessment year, if such undertaking fulfils any of the following, namely:— (i) is located in North-Eastern Region and has begun or begins commercial production of mineral oil before the 1st day of April, 1997; (ii) is located in any part of India and has begun or begins commercial production of mineral oil on or after the 1st day of April, 1997[3] [but not later than the 31st day of March, 2017]: 4[Provided that the provisions of this clause shall not apply to blocks licensed under a contract awarded after the 31st day of March, 2011 under the New Exploration Licencing Policy announced by the Government of India vide Resolution No. O-19018/22/95-ONG.DO.VL, dated the 10th February, 1999 or in pursuance of any law for the time being in force or by the Central or a State Government in any other manner;] (iii) is engaged in refining of mineral oil and begins such refining on or after the 1st day of October, 1998[5] [but not later than the 31st day of March, 2012]; 6[(iv) is engaged in commercial production of natural gas in blocks licensed under the VIII Round of bidding for award of exploration contracts (hereafter referred to as "NELP-VIII") under the New Exploration Licencing Policy announced by the Government of India vide Resolution No. O-19018/22/95-ONG.DO.VL, dated 10th February, 1999 and begins commercial production of natural gas on or after the 1st day of April, 2009[5] [but not later than the 31st day of March, 2017]; (v) is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009[5] [but not later than the 31st day of March, 2017].] Explanation. —For the purposes of claiming deduction under this sub-section, all blocks licensed under a single contract, which has been awarded under the New Exploration Licencing Policy announced by the Government of India vide Resolution No. O-19018/22/95-ONG.DO.VL, dated 10th February, 1999 or has been awarded in pursuance of any law for the time being in force or has been awarded by the Central or a State Government in any other manner, shall be treated as a single "undertaking" . ] 1. Subs. by Act 18 of 2005, s. 27, for "1st day of April, 2005" (w.e.f. 1-4-2006). Earlier substituted by Act 23 of 2004, s. 18 (w.e.f. 1-4-2005), which was substituted by 32 of 2003, s. 39 (w.e.f. 1-4-2004). 2. Subs. by Act 33 of 2009, s. 37, for sub-section (9) (w.e.f. 1-4-2000). 3. Ins. by Act 28 of 2016, s. 43 (w.e.f. 1-4-2017). 4. Ins. by Act 8 of 2011, s. 12 (w.e.f. 1-4-2012). 5. Ins. by Act 33 of 2009, s. 37 (w.e.f. 1-4-2009). 6. Ins. by s. 37 ibid. (w.e.f. 1-4-2010). 1[(10) The amount of deduction in the case of an undertaking developing and building housing projects approved before the[2] [31st day of March, 2008] by a local authority shall be hundred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if,— (a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction,— (i) in a case where a housing project has been approved by the local authority before the 1st day of April, 2004, on or before the 31st day of March, 2008; (ii) in a case where a housing project has been, or, is approved by the local authority on or after the 1st day of April, 2004[3] [but not later than the 31st day of March, 2005], within four years from the end of the financial year in which the housing project is approved by the local authority; 3[(iii) in a case where a housing project has been approved by the local authority on or after the 1st day of April, 2005, within five years from the end of the financial year in which the housing project is approved by the local authority.] Explanation. —For the purposes of this clause,— (i) in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority; (ii) the date of completion of construction of the housing project shall be taken to be the date on which the completion certificate in respect of such housing project is issued by the local authority; (b) the project is on the size of a plot of land which has a minimum area of one acre: Provided that nothing contained in clause (a) or clause (b) shall apply to a housing project carried out in accordance with a scheme framed by the Central Government or a State Government for reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any law for the time being in force and such scheme is notified by the Board in this behalf; (c) the residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and one thousand and five hundred square feet at[4] [any other place;] (d) the built-up area of the shops and other commercial establishments included in the housing project does not exceed[5] [three per cent.] of the aggregate built-up area of the housing project or[6] [five thousand square feet], whichever is higher; 1. Subs. by Act 23 of 2004, s. 18, for sub-section (10) (w.e.f. 1-4-2005). As later on amended by Act 10 of 2000, s. 29 (w.e.f. 1-4-2001). 2. Subs. by Act 33 of 2009, s. 37, for "31st day of March, 2007" (w.e.f. 1-4-2009). 3. Ins. by Act 14 of 2010, s. 27 (w.e.f. 1-4-2010). 4. Subs. by Act 33 of 2009, s. 37, for "any other place; and" (w.e.f. 1-4-2010). 5. Subs. by Act 14 of 2010, s. 27, for "five per cent." (w.e.f. 1-4-2010). 6. Subs. by s. 27, ibid ., for "two thousand square feet, whichever is less" (w.e.f. 1-4-2010). 1 [(e) not more than one residential unit in the housing project is allotted to any person not being an individual; and (f) in a case where a residential unit in the housing project is allotted to a person being an individual, no other residential unit in such housing project is allotted to any of the following persons, namely:— (i) the individual or the spouse or the minor children of such individual, (ii) the Hindu undivided family in which such individual is the karta, (iii) any person representing such individual, the spouse or the minor children of such individual or the Hindu undivided family in which such individual is the karta.] 2[ Explanation. —For the removal of doubts, it is hereby declared that nothing contained in this subsection shall apply to any undertaking which executes the housing project as a works contract awarded by any person (including the Central or State Government).] (11) Notwithstanding anything contained in clause (iii) of sub-section (2) and sub-sections (3), (4) and (5), the amount of deduction in a case of industrial undertaking deriving profit from the business of setting up and operating a cold chain facility for agricultural produce, shall be hundred per cent of the profits and gains derived from such industrial undertaking 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 derived from the operation of such facility in a manner that the total period of deduction does not exceed ten consecutive assessment years (or twelve consecutive assessment years where the assessee is a co-operative society) and subject to fulfilment of the condition that it begins to operate such facility on or after the 1st day of April, 1999 but before the[3] [1st day of April, 2004]. 4[(11A) The amount of deduction in a case of 5[an undertaking deriving profit from the business of processing, preservation and packaging of fruits or vegetables or[1] [meat and meat products or poultry or marine or dairy products or from] the integrated business of handling, storage and transportation of foodgrains, shall be hundred per cent of the profits and gains derived from such undertaking 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 derived from the operation of such business in a manner that the total period of deduction does not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2001]: 1[Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before the 1st day of April, 2009.] 6[(11B) The amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital in a rural area shall be hundred per cent. of the profits and gains of such business for a period of five consecutive assessment years, beginning with the initial assessment year, if—