The Income-tax Act, 1961 section 5: Milk and milk based product industries manuf…

In force · As amended up to 2026-08

5. Milk and milk based product industries manufacturing or producing— - (i) Milk powder; - (ii) Cheese; - (iii) Butter/ghee; - (iv) Infant food; - (v) Weaning food; - (vi) Malted milk food. 6. Food packaging industry. 7. Paper products industry. 8. Jute and mesta products industry. 9. Cattle or poultry or fishery feed products industry. 10. Edible Oil processing or vanaspati industry. 5. Relaxation of conditions. —(1) Notwithstanding anything contained in clause (a) of rule 4, the 2[3[Principal Chief Commissioner or Chief Commissioner] or 4[Principal Commissioner or Commissioner]] may, if he thinks fit and subject to such conditions, if any, as he thinks proper to attach to the recognition, accord recognition to a fund maintained by an employer whose principal place of business is not in India, provided the proportion of employees employed outside India does not exceed ten per cent. (2) Notwithstanding anything contained in clause (b) of rule 4, an employee who retains his employment while serving in the armed forces of the Union or when taken into or employed in the national service under any law for the time being in force, may, whether he receives from the employer any salary or not, contribute to the fund during his service in the armed forces of the Union or while so taken into or employed in the national service a sum not exceeding the amount he would have contributed had he continued to serve the employer. (3) Notwithstanding anything contained in clause (e) or clause (g) of rule 4,— (a) at the request made in writing by the employee who ceases to be an employee of the employer maintaining the fund, the trustees of the fund may consent to retain the whole or any part of the accumulated balance due to the employee to be drawn by him at any time on demand; 5. Sub-clause (i) omitted by s. 4, ibid . (w.e.f. 1-4-2003). 6. Subs. by Act 26 of 1988, s. 4, for sub-clauses (ii) to (v) (w.e.f. 1-4-1989). Provided further that such members of the staff are subjects of the country represented and are not engaged in any business or profession or employment in India otherwise than as members of such staff;] (vi) the remuneration received by him as an employee of a foreign enterprise for services rendered by him during his stay in India, provided the following conditions are fulfilled— (a) the foreign enterprise is not engaged in any trade or business in India; (b) his stay in India does not exceed in the aggregate a period of ninety days in such previous year ; and ||(b) his stay in India does not exceed in the aggregate a period of ninety days in such previous year ; and| |---|---| ||(c) such remuneration is not liable to be deducted from the income of the employer| ||chargeable under this Act;| ||| ||1* * * * *| ||2* * * * *| ||3* * * * *| (viii) any income chargeable under the head "Salaries" received by or due to any such individual being a non-resident as remuneration for services rendered in connection with his employment on a foreign ship where his total stay in India does not exceed in the aggregate a period of ninety days in the previous year; 4* * * * * 5. Explanation 1 omittedby s. 8 ibid . (w.e.f. 1-4-2004). (ii) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of[1] [the Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder or any other corresponding law for the time being in force; (iii) "export turnover" means the consideration[2] [in respect of export by the undertaking] of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India; (iv) "hundred per cent. export-oriented undertaking" means an undertaking which has been approved as a hundred per cent. export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act; (v) "relevant assessment years" means any assessment years falling within a period of ten consecutive assessment years, referred to in this section.] 5. Explanation renumbered as Explanation 1 thereof by Act 17 of 2013, s. 7 (w.e.f. 1-4-2014). 6. Ins. by s. 7, ibid. (w.e.f. 1-4-2014). 7. Ins. by Act 21 of 1979, s. 6 (w.e.f. 1-4-1980). 8. Subs. by Act 26 of 1986, s. 2, for certain words (w.e.f. 1-4-1987). 9. The words "a bank approved by the Central Government for the purpose of clause (viiia) or" omitted by Act 32 of 1994, s. 14 (w.e.f. 1-4-1995). 10. Ins. by Act 22 of 2007, s. 13 (w.e.f. 1-4-2007). 11. Subs. by Act 20 of 2002, s. 19, for "not exceeding five per cent." (w.e.f. 1-4-2003). 12. Subs. by Act 7 of 2017, s. 14 for "seven and one-half per cent." (w.e.f. 1-4-2018). 13. Subs. by Act 32 of 1994, s. 14, for "four per cent." (w.e.f. 1-4-1995). 14. Ins. by Act 27 of 1999, s. 22 (w.e.f. 1-4-2000). 1[Provided further that for the relevant assessment years commencing on or after the 1st day of April, 2003 and ending before the 1st day of April, 2005, the provisions of the first proviso shall have effect as if for the words "five per cent", the words "ten per cent." had been substituted:] 2[Provided also that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed a further deduction in excess of the limits specified in the foregoing provisions, for an amount not exceeding the income derived from redemption of securities in accordance with a scheme framed by the Central Government: 5. Explanation renumbered as Explanation2 thereof by s. 16, ibid . (w.e.f. 1-4-1997). 6. Ins. by Act 27 of 1999, s. 24 (w.e.f. 1-4-2000). 7. Ins. by Act 21 of 1998, s. 16 (w.e.f. 1-4-1998). (b) in respect of which depreciation is claimed under clause (i) of sub-section (1) of section 32; and (c) which was or has been used for the purposes of business, is sold, discarded, demolished or destroyed and the moneys payable in respect of such building, machinery, plant or furniture, as the case may be, together with the amount of scrap value, if any, exceeds the written down value, so much of the excess as does not exceed the difference between the actual cost and the written down value shall be chargeable to income-tax as income of the business of the previous year in which the moneys payable for the building, machinery, plant or furniture became due. Explanation .—Where the moneys payable in respect of the building, machinery, plant or furniture referred to in this sub-section become due in a previous year in which the business for the purpose of which the building, machinery, plant or furniture was being used is no longer in existence, the provision of this sub-section shall apply as if the business is in existence in that previous year.] 1* * * * * 5. Explanation 2 renumbered as Explanation 4 by Act 19 of 1978, s. 13 (w.e.f. 1-4-1978). 6. Subs. by Act 21 of 1979, s. 8, for "clause (vi)" (w.e.f. 1-4-1979). 7. Ins. by s. 8, ibid . (w.e.f. 1-4-1979). 8. Ins. by Act 19 of 1978, s. 13 (w.e.f. 1-4-1978). 9. Subs. by Act 21 of 1979, s. 8, for "full value of the consideration or any part thereof received or accruing as a result of the transfer" (w.e.f. 1-4-1979). 10. Subs. by s. 8, ibid ., for "referred to in clause (vi)" (w.e.f. 1-4-1979). 11. Subs. by s. 8, ibid ., for "said clause (vi)" (w.e.f. 1-4-1979). 12. Subs. by Act 4 of 1988, s. 2, "Income-tax Officer" (w.e.f. 1-4-1988). (1B) Where on the fulfilment of the conditions specified in sub-section (1A), the cost of the new asset referred to in that sub-section is taken into account for the purposes of sub-section (1), the assessee shall, within a period of ninety days from the expiry of the period of three years reckoned from the date of such deposit, furnish to the[1] [Assessing Officer] a certificate from the officer referred to in clause (b) of sub-section (1A) to the effect that the assessee has not taken any loan or advance on the security of such deposit during the said period of three years.] 5. The Explanation numbered as Explanation 1 by Act 11 of 1983, s. 20 (w.e.f. 1-4-1983). 6. Subs. by Act 21 of 1979, s. 8, for "full value of the consideration or any part thereof received or accruing as a result of the transfer" (w.e.f. 1-4-1979). 7. Subs. by s. 8, ibid ., for "clause (vi)" (w.e.f. 1-4-1979). 8. Ins. by Act 11 of 1983, s. 20 (w.e.f. 1-4-1983). 9. Sub-sections (3), (4) and (5) omitted by Act 11 of 1987, s. 22 (w.e.f. 1-4-1988). 10. Sub-section (6) renumbered as sub-section (3) by s. 22, ibid . (w.e.f. 1-4-1988). 11. Subs. by Act 21 of 1979, s. 8, for "clause (va)" (w.e.f. 1-4-1979). 12. The words, brackets, letters and figure "or clause (a) or clause (b) of sub-section (3)" omitted by Act 11 of 1987, s. 22 (w.e.f. 1-4-1988). 1 [54EA. Capital gain on transfer of long-term capital assets not to be charged in the case of investment in[2] [specified securities] .—(1) Where the capital gain arises from the transfer of a long-term capital asset[3] [before the 1st day of April, 2000] (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessee has, at any time within a period of six months after the date of such transfer, invested the whole or any part of the net consideration in any of the 5. The word "or" omitted by Act 32 of 1994, s. 50 (w.e.f. 1-4-1991.) 6. Clause (c) omitted by s. 50, ibid. (w.e.f. 1-4-1991). 7. Ins. by Act 18 of 1992, s. 43 (w.e.f. 1-4-1993). (3) Notwithstanding anything contained in any other provision of this Act, where a partition has taken place among the members of a Hindu undivided family or where an association of persons has been dissolved after a deduction has been allowed under sub-section (1), the provisions of sub-section (2) shall apply as if the person in receipt of income referred to therein is the assessee.] 1[ 80CCC. Deduction in respect of contribution to certain pension funds. —(1) Where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India[2] [or any other insurer] for receiving pension from the fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of[3] [one hundred and fifty thousand rupees] in the previous year. 5. Proviso omitted by Act 22 of 1995, s. 23 (w.e.f. 1-4-1996). Prior to its omission, the proviso, as amended by the 22 of 1995, s. 23 (w.e.f. 1-4-1996). Prior to its omission, the proviso, as amended by the 32 of 1994, s. 31 (1-4-1995). 6. Subs. by Act 23 of 2012, s. 43, for sub-clause (ii) (w.e.f. 1-4-2013). 7. Subs. by 28 of 2016, s. 50, for "unlisted securities" (w.e.f. 1-4-2017). 8. Clause (c) relettered as Clause (d) thereof by Act 32 of 1994, s. 31 (w.e.f. 1-4-1995). 9. Ins. by s. 31, ibid ., (w.e.f. 1-4-1995). 10. Subs. by Act 33 of 1996, s. 37, for "thirty per cent." (w.e.f. 1-4-1997). 1* * * * * 2[Provided that where the tax payable in respect of any income arising from the transfer of a long-term capital asset,[3] [being listed securities (other than a unit)][4] [or zero coupon bond], exceeds ten per cent of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee: 5. The word "quarterly" omitted by Act 33 of 2009, s. 53 (w.e.f. 1-10-2009). 6. Subs. by Act 23 of 2004, s. 33, for "buyer" (w.e.f. 1-10-2004). 7. Subs. by Act 21 of 2006, s. 32, for "seller" (w.e.f. 1-4-2007). (ii) in all returns prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of section 206C to an income-tax authority;] 1[(iii) in all 2* statements prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (3) of section 206C.] (6) Every person receiving any document relating to a transaction prescribed under clause (c) of sub-section (5) shall ensure that the Permanent Account Number[3] [or the General Index Register Number] has been duly quoted in the document. (7) No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number. 4[ Explanation. —For the removal of doubts, it is hereby declared that any person, who has been allotted a permanent account number under any clause other than clause (iv) of sub-section (1), shall not be required to obtain another permanent account number and the permanent account number already allotted to him shall be deemed to be the permanent account number in relation to fringe benefit tax.] (8) The Board may make rules providing for— 5. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the words "association of persons" substituted by Act 4 of 1988, s. 64 (w.e.f. 1-4-1989). 6. Subs. by Act 44 of 1980, s. 27, for "under a trust declared by will" (w.e.f. 1-4-1980). 7. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 8. Subs. by Act 44 of 1980, s. 27, for "as if the relevant income or part of relevant income" (w.e.f. 1-4-1980). 9. Ins. by Act 21 of 1984, s. 21 (w.e.f. 1-4-1985). 1[(2) In the case of relevant income which is derived from property held under trust wholly for charitable or religious purposes,[2] [or which is of the nature referred to in sub-clause (iia) of clause (24) of section 2,[3] [or which is of the nature referred to in sub-section (4A) of section 11,] tax shall be charged on so much of the relevant income as is not exempt under section 11 or section 12], as if the relevant income not so exempt were the income of an association of persons: 4[Provided that in a case where the whole or any part of the relevant income is not exempt under section 11 or section 12 by virtue of the provisions contained in clause (c) or clause (d) of subsection (1) of section 13, tax shall be charged [on the relevant income or part of relevant income at the maximum marginal rate.]] 5. Computation of profits and gains of other insurance business. — The profits and gains of any business of insurance other than life insurance shall be taken to be the[2] [profit before tax and appropriations as disclosed in the profit and loss account prepared in accordance with the provisions of the Insurance Act, 1938 (4 of 1938) or the rules made thereunder or the provisions of the Insurance Regulatory and Development Authority Act, 1999 (4 of 1999) or the regulations made thereunder,] subject to the following adjustments:— (a) subject to the other provisions of this rule,[3] [any expenditure or allowance including any amount debited to the profit and loss account either by way of a provision for any tax, dividend, reserve or any other provision as may be prescribed] which is not admissible under the provisions of[4] [sections 30 to 43B] in computing the profits and gains of a business shall be added back; 1. Subs. by Act 66 of 1976, s. 23 (w.e.f. 1-4-1977). 2. Subs. by Act 33 of 2009, s. 80, for certain words (w.e.f. 1-4-2011). 3. Subs. by Act 21 of 1998, s. 64, for "any expenditure or allowance" (w.r.e.f. 1-4-1989). 4. Subs. by Act 4 of 1988, s. 126, for "section 30 to 43A" (w.e.f. 1-4-1989). 1[(b) (i) any gain or loss on realisation of investments shall be added or deducted, as the case may be, if such gain or loss is not credited or debited to the profit and loss account; (b) where the accumulated balance due to an employee who has ceased to be an employee is retained in the fund in accordance with the preceding clause, the fund may consist also of interest in respect of such accumulated balance; 1. Subs. by Act 22 of 2007, s. 82, for clause (ea) (w.e.f. 1-4-2007). 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.e.f. 1-6-2013). 4. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 1 [(c) the fund may also consist of any amount transferred from the individual account of an employee in any recognised provident fund maintained by his former employer and the interest in respect thereof.] (4) Subject to any rules which the Board may make in this behalf, the[2] [[3] [Principal Chief Commissioner or Chief Commissioner] or[4] [Principal Commissioner or Commissioner]] may, in respect of any particular fund, relax the provisions of clause (c) of rule 4,— (a) so as to permit the payment of larger contributions by an employer to the individual accounts of employees whose salaries do not in each case exceed five hundred rupees per mensem; and 5. The Explanation inserted by Act 29 of 2006, s. 5 (w.e.f. 1-4-2006). 6. Subs. by Act 32 of 1994, s. 13, for the Explanation (w.e.f. 1-4-1995). 5[(xi) the remuneration received by him as an employee of the Government of a foreign State during his stay in India in connection with his training in any establishment or office of, or in any undertaking owned by,— (i) the Government ; or (ii) any company in which the entire paid-up share capital is held by the Central Government, or any State Government or Governments, or partly by the Central Government and partly by one or more State Governments; or (iii) any company which is a subsidiary of a company referred to in item (ii); or (iv) any corporation established by or under a Central, State or Provincial Act; or (v) any society registered under the Societies Registration Act, 1860 (14 of 1860), or under any other corresponding law for the time being in force and wholly financed by the Central Government, or any State Government or State Governments, or partly by the Central Government and partly by one or more State Governments;] 6[(6A) where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement 1. Sub-clause (via) omitted by Act 21 of 1998, s. 5 (w.e.f. 1-4-1999). 2. Sub-clause (vii) omitted by Act 38 of 1993, s. 3 (w.e.f. 1-4-1993). 3. Sub-clause (viia) omitted by Act 21 of 1998, s. 5 (w.e.f. 1-4-1999). 3[ Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.] 4[ Explanation 4.—For the purposes of this section, "manufacture or produce" shall include the cutting and polishing of precious and semi-precious stones.] Provided also that no deduction shall be allowed under the third proviso unless such income has been disclosed in the return of income under the head "Profits and gains of business or profession.] Explanation .—For the purposes of this sub-clause, "relevant assessment years" means the five consecutive assessment years commencing on or after the 1st day of April, 2000 and ending before the 1st day of April, 2005;] (b) a bank, being a bank incorporated by or under the laws of a country outside India, an amount not exceeding five per cent of the total income (computed before making any deduction under this clause and Chapter VI-A);] 3 [(c) a public financial institution or a State financial corporation or a State industrial investment corporation, an amount not exceeding five per cent of the total income (computed before making any deduction under this clause and Chapter VI-A):] (3) Where an asset representing expenditure of a capital nature on scientific research within the meaning of[2] [clause (iv) of sub-section (1), or clause (c) of sub-section (2B), of section 35], read with clause (4) of section 43, is sold, without having been used for other purposes, and the proceeds of the sale together with the total amount of the deductions made under clause (i)[3] [or, as the case may be, the amount of the deduction under clause (ia) of sub-section (2), or clause (c) of sub-section (2B), of section 35] exceed the amount of the capital expenditure, the excess or the amount of the deductions so made, whichever is the less, shall be chargeable to income-tax as income of the business or profession of the previous year in which the sale took place. Explanation .—Where the moneys payable in respect of any asset referred to in this sub-section become due in a previous year in which the business is no longer in existence, the provisions of this sub-section shall apply as if the business is in existence in that previous year. 2[(1C) Notwithstanding anything contained in sub-section (1), where the capital gain arises from the transfer of the original asset, made after the 31st day of March, 1992, in respect of which the assessee had received any amount by way of advance on or before the 29th day of February, 1992 and had invested or deposited the whole or any part of such amount in the new asset on or before the later date, then, the provisions of clauses (a) and (b) of sub-section (1) shall apply in the case of such investment or deposit as they apply in the case of investment or deposit under that sub-section.] (2) Where the new asset is transferred, or converted (otherwise than by transfer) into money, within a period of three years from the date of its acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under the head "Capital gains" relating to[3] [long-term capital assets] of the previous year in which the new asset is transferred or converted (otherwise than by transfer) into money.] 4[bonds, debentures, shares of a public company or units of any mutual fund referred to in clause (23D) of section 10,]specified by the Board in this behalf by notification in the Official Gazette (such assets hereafter in this section referred to as the[2] [specified securities]), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,— (a) if the cost of the[2] [specified securities] is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the cost of the[2] [specified securities] is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the[2] [specified securities] bears to the net consideration shall not be charged under section 45. (2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in respect of which a deduction has been allowed under sub-section (1), together with the interest or bonus accrued or credited to the assessee's account, if any, is received by the assessee or his nominee— (a) on account of the surrender of the annuity plan whether in whole or in part, in any previous year, or (b) as pension received from the annuity plan, an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in that previous year in which such withdrawal is made or, as the case may be, pension is received, and shall accordingly be chargeable to tax as income of that previous year. 4[(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section,— (a) a rebate with reference to such amount shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]] 5[Provided further that where the tax payable in respect of any income arising from the transfer of a long-term capital asset, being a unit of a Mutual Fund specified under clause (23D) of section 10, during the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, exceeds ten per cent. of the amount of capital gains, before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee.] 6[ Explanation.— For the purposes of this sub-section,— 7[(a) the expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956); (aa) "listed securities" means the securities which are listed on any recognised stock exchange in India; (ab) "unlisted securities" means securities other than listed securities. 8* * * *]]] (2) Where the gross total income of an assessee includes any income arising from the transfer of a long-term capital asset, the gross total income shall be reduced by the amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee. (a) the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain; (b) the categories of transactions in relation to which Permanent Account Numbers[3] [or the General Index Register Number] shall be quoted by every person in the documents pertaining to such transactions; (c) the categories of documents pertaining to business or profession in which such numbers shall be quoted by every person; 3[(d) class or classes of persons to whom the provisions of this section shall not apply; (e) the form and the manner in which the person who has not been allotted a Permanent Account Number or who does not have General Index Register Number shall make his declaration; (f) the manner in which the Permanent Account Number or the General Index Register Number shall be quoted in respect of the categories of transactions referred to in clause (c); (g) the time and the manner in which the transactions referred to in clause (c) shall be intimated to the prescribed authority.] Explanation .—For the purposes of this section,— (a) "Assessing Officer" includes an income-tax authority who is assigned the duty of allotting permanent account numbers; (3)[5] [In a case where the relevant income is derived from property held under trust in part only for charitable or religious purposes or is of the nature referred to in sub-clause (iia) of clause (24) of section 2][3] [or is of thenature referred to in sub-section (4A) of section 11,] and either the relevant income applicable to purposes other than charitable or religious purposes (or any part thereof)[6] [is not specifically receivable on behalf or for the benefit of any one person or the individual shares of the beneficiaries in the income so applicable are indeterminate or unknown, the tax chargeable on the relevant income shall be the aggregate of— (a) the tax which would be chargeable on that part of the relevant income which is applicable to charitable or religious purposes (as reduced by the income, if any, which is exempt under section 11) as if such part (or such part as so reduced) were the total income of an association of persons; and (b) the tax on that part of the relevant income which is applicable to purposes other than charitable or religious purposes, and which is either not specifically receivable on behalf or for the benefit of any one person or in respect of which the shares of the beneficiaries are indeterminate or unknown, at the maximum marginal rate:] Provided that in a case where— (ii) any provision for diminution in the value of investment debited to the profit and loss account, shall be added back;] (c) such amount carried over to a reserve for unexpired risks as may be prescribed in this behalf shall be allowed as a deduction. C.—Other provisions (b) so as to permit the crediting by employers to the individual accounts of employees of periodical bonuses or other contributions of a contingent nature, where the calculation and payment of such bonuses or other contributions is provided for on definite principles by the regulations of the fund. (5) Notwithstanding anything contained in clause (h) of rule 4, in order to enable an employee to pay the amount of tax assessed on his total income as determined under sub-rule (4) of rule 11, he shall be entitled to withdraw from the balance to his credit in the recognised provident fund a sum not exceeding the difference between such amount and the amount to which he would have been assessed if the transferred balance referred to in sub-rule (2) of rule 11 had not been included in his total income. 5. The word "and" omitted by Act 23 of 2012, s. 9 (w.e.f. 1-4-2013). 6. Ins. by s. 9, ibid . (w.e.f. 1-4-2013). 1[Provided that a public financial institution or a State financial corporation or a State industrial investment corporation referred to in this sub-clause shall, at its option, be allowed in any of the two consecutive assessment years commencing on or after the 1st day of April, 2003 and ending before the 1st day of April, 2005, deduction in respect of any provision made by it for any assets classified by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued by it in this behalf, of an amount not exceeding ten per cent of the amount of such assets shown in the books of account of such institution or corporation, as the case may be, on the last day of the previous year.] 4[(d) a non-banking financial company, an amount not exceeding five per cent. of the total income (computed before making any deduction under this clause and Chapter VI-A).] Explanation .—For the purposes of this clause,— 5[(i) "non-scheduled bank" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank; 6[(ia)]"rural branch" means a branch of a scheduled bank 7[or a non-scheduled bank] situated in a place which has a population of not more than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; 1. Ins. by Act 20 of 2002, s. 19 (w.e.f 1-4-2003). (4) Where a deduction has been allowed in respect of a bad debt or part of debt under the provisions of clause (vii) of sub-section (1) of section 36, then, if the amount subsequently recovered on any such debt or part is greater than the difference between the debt or part of debt and the amount so allowed, the excess shall be deemed to be profits and gains of business or profession, and accordingly chargeable to income-tax as the income of the previous year in which it is recovered, whether the business or profession in respect of which the deduction has been allowed is in existence in that year or not. 4[ Explanation .—For the purposes of sub-section (3),— - (1) "moneys payable" in respect of any building, machinery, plant or furniture includes— (a) any insurance, salvage or compensation moneys payable in respect thereof; (b) where the building, machinery, plant or furniture is sold, the price for which it is sold, so, however, that where the actual cost of a motor car is, in accordance with the proviso to clause (1) of section 43, taken to be twenty-five thousand rupees, the moneys payable in respect of such motor car shall be taken to be a sum which bears to the amount for which the motor car is sold or, as the case may be, the amount of any insurance, salvage or compensation moneys payable in respect thereof (including the amount of scrap value, if any) the same proportion as the amount of twenty-five thousand rupees bears to 4[5[ Explanation1 ].—Where the assessee deposits after the 27th day of April, 1978, the 6[whole or any part of the net consideration in respect] of the original asset in any new asset, being a deposit referred to in[7] [sub-clause (vi) of clause (a)] of Explanation 1 below sub-section (1), and such assessee takes any loan or advance on the security of such deposit, he shall be deemed to have converted (otherwise than by transfer) such deposit into money on the date on which such loan or advance is taken.] 8[ Explanation 2 .—In a case where the original asset is transferred after the 28th day of February, 1983 and the assessee invests the whole or any part of the net consideration in respect of the original asset in any new asset and such assessee takes any loan or advance on the security of such new asset, he shall be deemed to have converted (otherwise than by transfer) such new asset on the date on which such loan or advance is taken.] 9* * * * * 10[(3)] Where the cost of the equity shares referred to in 11[sub-clause (va) of clause (a)] of Explanation 1 below sub-section (1) is taken into account for the purposes of clause (a) or clause (b) of sub-section (1)[12] *, a deduction with reference to such cost shall not be allowed under section 80CC. 1. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 2. Ins. by Act 18 of 1992, s. 30 (w.e.f. 1-4-1992). (2) Where the[2] [specified securities] are transferred or converted (otherwise than by transfer) into money at any time within a period of three years from the date of their acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such[2] [specified securities] as provided in clause (a) or clause (b) of sub-section (1) shall be deemed to be the income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which the[2] [specified securities] are transferred or converted (otherwise than by transfer) into money. Explanation .—In a case where the original asset is transferred and the assessee invests the whole or any part of the net consideration in respect of the original asset in any[2] [specified securities] and such assessee takes any loan or advance on the security of such[2] [specified securities], he shall be deemed to have converted (otherwise than by transfer) such[2] [specified securities] into money on the date on which such loan or advance is taken. (3) Where the cost of the[2] [specified securities] has been taken into account for the purposes of clause (a) or clause (b) of sub-section (1), a rebate with reference to such cost shall not be allowed under section 88. Explanation .—For the purposes of this section,— 5[ 80CCD. Deduction in respect of contribution to pension scheme of Central Government. —(1) 6[Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004 or, being an individual employed by any other employer],[7] [or any other assessee, being an individual] has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited[8] [as does not exceed,— (a) in the case of an employee, ten per cent of his salary in the previous year; and 1. Ins. by Act 33 of 1996, s. 23 (w.e..f 1-4-1997). 2. Ins. by Act 14 of 2001, s. 36 (w.e.f. 1-4-2002). 3. Subs. by Act 20 of 2015, s. 17, for "one lakh rupees" (w.e.f. 1-4-2016). 4. Subs. by Act 18 of 2005, s. 22, for sub-section (3) (w.e.f. 1-4-2006). 5. Ins. by Act 23 of 2004, s. 15 (w.e.f. 1-4-2004). 6. Subs. by Act 25 of 2014, s. 28, for "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004" (w.e.f. 1-4-2015). 7. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009). 8. Subs. by s. 30, ibid ., for "as does not exceed ten per cent. of his salary in the previous year" (w.e.f. 1-4-2009). (3) Where the total income of an assessee includes any income arising from the transfer of a long-term capital asset, the total income shall be reduced by the amount of such income and the rebate under section 88 shall be allowed from the income-tax on the total income as so reduced.] (b) "permanent account number" means a number which the Assessing Officer may allot to any person for the purpose of identification and includes a permanent account number allotted under the new series; (c) "permanent account number under the new series" means a permanent account number having ten alphanumeric characters[5] *;] 3[(d) "General Index Register Number" means a number given by an Assessing Officer to an assessee in the General Index Register maintained by him and containing the designation and particulars of the ward or circle or range of the Assessing Officer.] 1. Ins. by Act 21 of 2006, s. 32 (w.e.f. 1-6-2006). 7[(i) none of the beneficiaries in respect of the part of the relevant income which is not applicable to charitable or religious purposes has any other income chargeable under this Act exceeding the maximum amount not chargeable to tax in the case of an association of persons or is a beneficiary under any other trust; or] (ii) the relevant income is receivable[8] [under a trust declared by any person by will and such trust is the only trust so declared by him]; or (iii) the relevant income is receivable under a trust created before the 1st day of March, 1970, by a non-testamentary instrument and the[9] [Assessing Officer] is satisfied, having regard to all the circumstances existing at the relevant time, that the trust, to the extent it is not for charitable or religious purposes, was created bona fide exclusively for the benefit of the relatives of the settlor, or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance, (a) "developed" means at least seventy-five per cent. of the expenditure incurred in India by the eligible assessee for any invention in respect of which a patent is granted under the Patents Act, 1970 (herein referred to as the Patents Act); (b) "eligibleassessee" means a person resident in India and who is a patentee; (c) "invention" shall have the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Patents Act; (d) "lump sum" includes an advance payment on account of such royalties which is not returnable; (e) "patent" shall have the meaning assigned to it in clause (m) of sub-section (1) of section 2 of the Patents Act; ( f) "patentee" means the person, being the true and first inventor of the invention, whose name is entered on the patent register as the patentee, in accordance with the Patents Act, and includes every such person, being the true and first inventor of the invention, where more than one person is registered as patentee under that Act in respect of that patent; (g) "patented article" and "patented process" shall have the meanings respectively assigned to them in clause (o) of sub-section (1) of section 2 of the Patents Act; 5. The Explanation omitted by Act 13 of 2018, s. 41 (w.e.f. 1-4-2018). 1[CHAPTER XIIDA SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES 2. Ins. by Act 32 of 2003, s. 18 (w.e.f. 1-4-2004). 3. Ins. by Act 49 of 1991, s. 14 (w.e.f. 1-4-1992). 4. Ins. by Act 28 of 2016, s. 21 (w.e.f. 1-4-2017). 5. Ins. by Act 14 of 1982, s. 10 (w.e.f. 1-4-983). 6. Clause (i) renumbered as clause (ia) thereof by Act 14 of 1982, s. 10 (w.e.f. 1-4-1983). 7. Ins. by s. 10, ibid . (w.e.f. 1-4-1983). 1[(ii) "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)[2] *;] 3[(iii) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (iv) "State financial corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951); section 3A or an institution notified under section 46 of the State Financial Corporations 1. Sub-section (2A) omitted by Act 46 of 1986, s. 7 (w.e.f. 1-4-1988). 2. Subs. by Act 44 of 1980, s. 11, for the words, brackets and figures "clause (iv) of subsection (1) of section 35" (w.e.f. 1-4-1981). 3. Subs. by s. 11, ibid., for "clause (ia) of sub-section (2) of section 35" (w.e.f. 1-4-1981). Earlier Quoted portion "or, as the case may be, the amount of the deduction under clause (ia)" inserted by Act 20 of 1967, s. 33 and the Third Schedule (w.e.f 1-4-1968). 4. Subs. by Act 46 of 1986, s. 7, for the Explanation (w.e.f. 1-4-1988). the actual cost of the motor car to the assessee as it would have been computed before applying the said proviso; (2) "sold" includes a transfer by way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated company where the amalgamated company is an Indian company.] 1[(4A) Where a deduction has been allowed in respect of any special reserve created and maintained under clause (viii) of sub-section (1) of section 36, any amount subsequently withdrawn from such special reserve shall be deemed to be the profits and gains of business or profession and accordingly be chargeable to income-tax as the income of the previous year in which such amount is withdrawn. 3. Subs. by Act 11 of 1987, s. 22, for "capital assets other than short-term capital assets" (w.e.f. 1-4-1988). 4. Ins. by Act 19 of 1978, s. 13 (w.e.f. 1-4-1978). (a) "cost", in relation to any[2] [specified securities], means the amount invested in such[2] [specified securities] out of the net consideration received or accruing as a result of the transfer of the original asset; (b) "net consideration", in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by the expenditure incurred wholly and exclusively in connection with such transfer.] 1. Ins. by Act 33 of 1996, s. 20 (w.e.f. 1-10-1996). 2. Subs. by Act 14 of 1997, s. 2, for "specified bonds or debentures" (w.e.f. 1-10-1996). 3. Ins. by Act 10 of 2000, s. 25 (w.e.f. 1-4-2001). 4. Subs. by Act 14 of 1997, s. 2, for "bonds, debentures or units of any mutual fund referred to in clause (23D) of section 10" (w.e.f. 1-10-1996). (b) in any other case,[1] [twenty per cent.] of his gross total income in the previous year.] 2* * * * * 3[(1B) An assessee referred to in sub-section (1), shall be allowed a deduction in computation of his total income, whether or not any deductions is allowed under sub-section (1), of the whole of the amount paid or deposited in the previous year in his account under a pension scheme notified or as may be notified by the Central Government, which shall not exceed fifty thousand rupees: Provided that no deduction under this sub-section shall be allowed in respect of the amount on which a deduction has been claimed and allowed under sub-section (1).] (2) Where, in the case of an assessee referred to in sub-section (1), the[4] [Central Government or any other employer] makes any contribution to his account referred to in that sub-section, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amount contributed by the 4[Central Government or any other employer] as does not exceed ten per cent of his salary in the previous year. (h) "royalty", in respect of a patent, means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head "Capital gains" or consideration for sale of product manufactured with the use of patented process or the patented article for commercial use) for the— (i) transfer of all or any rights (including the granting of a licence) in respect of a patent; or (ii) imparting of any information concerning the working of, or the use of, a patent; or (iii) use of any patent; or (iv) rendering of any services in connection with the activities referred to in sub-clauses (i) to (iii); (i) "true and first inventor" shall have the meaning assigned to it in clause (y) of sub-section (1) of section 2 of the Patents Act.] 1 [115BBG. Tax on income from transfer of carbon credits. —(1) Where the total income of an assessee includes any income by way of transfer of carbon credits, the income-tax payable shall be the aggregate of— (a) the amount of income-tax calculated on the income by way of transfer of carbon credits, at the rate of ten per cent; and (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a). 5. The Explanation renumbered as Explanation 1 thereof by Act 17 of 2013, s. 34 (w.e.f. 1-6-2013). 6. Ins. by s. 34, ibid. (w.e.f. 1-6-2013). (v) "State industrial investment corporation" means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing long-term finance for industrial projects and[4] [eligible for deduction under clause (viii) of this sub-section];] 5[(vi) "co-operative bank", "primary agricultural credit society" and "primary co-operative agricultural and rural development bank" shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P;] 6[(vii) "non-banking financial company" shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);] 7[(viii) in respect of any special reserve created and maintained by a specified entity, an amount not exceeding twenty per cent of the profits derived from eligible business computed under the head "Profits and gains of business or profession" (before making any deduction under this clause) carried to such reserve account: Provided that where the aggregate of the amounts carried to such reserve account from time to time exceeds twice the amount of the paid up share capital and of the general reserves of the specified entity, no allowance under this clause shall be made in respect of such excess. Explanation .—In this clause,— (a) "specified entity" means,— (i) a financial corporation specified in section 4A of the Companies Explanation .—Where any amount is withdrawn from the special reserve in a previous year in which the business is no longer in existence, the provisions of this sub-section shall apply as if the business is in existence in that previous year.] (5) Where the business or profession referred to in this section is no longer in existence and there is income chargeable to tax under sub-section (1),[2] * sub-section (3) ,[3] [sub-section (4) or sub-section (4A)] in respect of that business or profession, any loss, not being a loss sustained in speculation[4] * business, which arose in that business or profession during the previous year in which it ceased to exist and which could not be set off against any other income of that previous year shall, so far as may be, be set off against the income chargeable to tax under the sub-sections aforesaid. 5[(6) References in sub-section (3) to any other provision of this Act which has been amended or omitted by the Direct Tax Laws (Amendment) Act, 1987 shall, notwithstanding such amendment or omission, be construed, for the purposes of that sub-section, as if such amendment or omission had not been made.] (3) Where any amount standing to the credit of the assessee in his account referred to in 5[sub-section (1) or sub-section (1B)], in respect of which a deduction has been allowed 6[under those sub-sections] or sub-section (2), together with the amount accrued thereon, if any, is received by the assessee or his nominee, in whole or in part, in any previous year,— (a) on account of closure or his opting out of the pension scheme referred to in 5[sub-section (1) or sub-section (1B)]; or (b) as pension received from the annuity plan purchased or taken on such closure or opting out, the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in the previous year in which such amount is received, and shall accordingly be charged to tax as income of that previous year. 7[Provided that the amount received by the nominee, on the death of the assessee, under the circumstances referred to in clause (a), shall not be deemed to be the income of the nominee.] 8[(4) Where any amount paid or deposited by the assessee has been allowed as a deduction under 5[sub-section (1) or sub-section (1B)],— (a) no rebate with reference to such amount shall be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1). Explanation.— For the purposes of this section, "carbon credit" in respect of one unit shall mean reduction of one tonne of carbon dioxide emissions or emissions of its equivalent gases which is validated by the United Nations Framework on Climate Change and which can be traded in market at its prevailing market price.] 2[CHAPTER XII-A SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS 5. Interest, costs and charges recoverable. —There shall be recoverable, in the proceedings in execution of every certificate,— (a) such interest upon the amount of tax or penalty or other sum to which the certificate relates as is payable in accordance with sub-section (2) of section 220, and (b) all charges incurred in respect of— (i) the service of notice upon the defaulter to pay the arrears, and of warrants and other processes, and (ii) all other proceedings taken for realising the arrears. (b) no deduction with reference to such amount shall be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.] 9[(5) For the purposes of this section, the assessee shall be deemed not to have received any amount in the previous year if such amount is used for purchasing an annuity plan in the same previous year.] Explanation .—For the purposes of this section, "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.] 1. Subs. by Act 7 of 2017, s. 33 for "ten per cent." (w.e.f. 1-4-2018). 2. Sub-section (1A) omitted by Act 20 of 2015, s. 18 (w.e.f. 1-4-2016). 3. Ins. by s. 18, ibid. (w.e.f. 1-4-2016). 4. Subs. by Act 22 of 2007, s. 25, for "Central Government" (w.e.f. 1-4-2004). 5. Subs. by Act 20 of 2015, s. 18, for "sub-section (1)" (w.e.f. 1-4-2016). 6. Subs. by s. 18, ibid ., for " under that sub-section" (w.e.f. 1-4-2016). 7. Ins. by Act 28 of 2016, s. 37 (w.e.f. 1-4-2017). 8. Subs. by Act 18 of 2005, s. 23, for sub-section (4) (w.e.f. 1-4-2006). 9. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009). 1[ 80CCE. Limit on deductions under section 80C, section 80CCC and 80CCD. —The aggregate amount of deductions under section 80C, section 80CCC and[2] [sub-section (1) of section 80CCD] shall not, in any case, exceed[3] [one hundred and fifty thousand rupees].] (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation .—The provisions of Explanations 1 and 2 to sub-section (3) of sectopm 80-IA shall apply for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section. (5) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise. (6) Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking or enterprise under this section, where the total period of deduction inclusive of the period of deduction under this section, or under the second proviso to sub-section (4) of section 80-IB or under section 10C, as the case may be, exceeds ten assessment years. (7) The provisions contained in sub-section (5) and sub-sections (7) to (12) of section 80-IA shall, so far as may be, apply to the eligible undertaking or enterprise under this section. (8) For the purposes of this section,— (i) "Industrial Area" means such areas, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; 5. Contributions by employer when deemed to be income of employer. —Where any contributions by an employer (including the interest thereon, if any) are repaid to the employer, the amount so repaid shall be deemed for the purpose of income-tax[6] * to be the income of the employer of the previous year in which it is so repaid. 4[ 80CCF. Deduction in respect of subscription to long-term infrastructure bonds. —In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011[5] [or to the assessment year beginning on the 1st day of April, 2012], as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government.] deposited, during the previous year relevant to the assessment year beginning on the 1st day 6[ 80CCG. Deduction in respect of investment made under an equity savings scheme. —(1) Where an assessee, being a resident individual, has, in a previous year, acquired listed equity shares[7] [or listed units of an equity oriented fund] in accordance with a scheme, as may be notified by the Central Government in this behalf, he shall, subject to the provisions of sub-section (3), be allowed a deduction, in the computation of his total income of the assessment year relevant to such previous year, of fifty per cent of the amount invested in such equity shares[7] [or units] to the extent such deduction does not exceed twenty-five thousand rupees. (ii) "Industrial Estate" means such estates, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (iii) "Industrial Growth Centre" means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (iv) "Industrial Park" means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (v) "Initial assessment year" means the assessment year relevant to the previous year in which the undertaking or the enterprise begins to manufacture or produce articles or things, or commences operation or completes substantial expansion; (vi) "Integrated Infrastructure Development Centre" means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (vii) "North-Eastern States" means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura; (viii) "Software Technology Park" means any park set up in accordance with the Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry; 5. Gratuity deemed to be salary. —Where any gratuity is paid to an employee during his lifetime, the gratuity shall be treated as salary paid to the employee for the purposes of this Act. 8[(2) The deduction under sub-section (1) shall be allowed in accordance with, and subject to, the provisions of this section for three consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed equity shares or listed units of equity oriented fund were first acquired.] (3) The deduction under sub-section (1) shall be subject to the following conditions, namely:— (i) the gross total income of the assessee for the relevant assessment year shall not exceed 9[twelve lakh rupees]; (ii) the assessee is a new retail investor as may be specified under the scheme referred to in sub-section (1); (iii) the investment is made in such listed equity shares[7] [or listed units of equity oriented fund] as may be specified under the scheme referred to in sub-section (1); (iv) the investment is locked-in for a period of three years from the date of acquisition in accordance with the scheme referred to in sub-section (1); and - (v) such other condition as may be prescribed. (4) If the assessee, in any previous year, fails to comply with any condition specified in sub-section (3), the deduction originally allowed shall be deemed to be the income of the assessee of such previous year and shall be liable to tax for the assessment year relevant to such previous year.] 1. Ins. by Act 18 of 2005, s. 24 (w.e.f. 1-4-2006). (ix) "Substantial expansion" means increase in the investment in the plant and machinery by at least fifty per cent of the book value of plant and machinery (before taking depreciation in any year), as on the first day of the previous year in which the substantial expansion is undertaken; (x) "Theme Park" means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government.] 1[ 80-ID. Deduction in respect of profits and gains from business of hotels and convention centres in specified area. —(1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking from any business referred to in sub-section (2) (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 of an amount equal to hundred per cent of the profits and gains derived from such business for five consecutive assessment years beginning from the initial assessment year. (2) This section applies to any undertaking,— (i) engaged in the business of hotel located in the specified area, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2007 and ending on[2] [the 31st day of July, 2010]; or 5. Aerated waters in the manufacture of which blended flavouring concentrates in any form are used. 5[ Explanation .—"Blended flavouring concentrates" shall include, and shall be deemed always to have included, synthetic essences in any form.] 2. Subs. by Act 8 of 2011, s. 9, for "section 80CCD" (w.e.f. 1-4-2012). 3. Subs. by Act 25 of 2014, s. 29, for "one lakh rupees" (w.e.f. 1-4-2015). 4. Ins. by Act 14 of 2010, s. 24 (w.e.f. 1-4-2011). 5. Ins. by Act 8 of 2011, s. 10 (w.e.f. 1-4-2012). 6. Ins. by Act 23 of 2012, s. 25 (w.e.f. 1-4-2013). 7. Ins. by Act 17 of 2013, s. 13 (w.e.f. 1-4-2014). 8. Subs. by s. 13, ibid ., for sub-section (2) (w.e.f. 1-4-2014). 9. Subs. by s. 13, ibid ., for "ten lakh rupees" (w.e.f. 1-4-2014). 1[ Explanation .—For the purposes of this section, "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.] 2[(5) Notwithstanding anything contained in sub-sections (1) to (4), no deduction under this section shall be allowed in respect of any assessment year commencing on or after the 1st day of April, 2018: Provided that an assessee, who has acquired listed equity shares or listed units of an equity oriented fund in accordance with the scheme referred to in sub-section (1) and claimed deduction under this section for any assessment year commencing on or before the 1st day of April, 2017, shall be allowed deduction under this section till the assessment year commencing on the 1st day of April, 2019, if he is otherwise eligible to claim the deduction in accordance with the other provisions of this section.] (ii) engaged in the business of building, owning and operating a convention centre, located in the specified area, if such convention centre is constructed at any time during the period beginning on the 1st day of April, 2007 and ending on[2] [the 31st day of July, 2010]; 3[(iii) engaged in the business of hotel located in the specified district having a World Heritage Site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.] (3) The deduction under sub-section (1) shall be available only if— (i) the eligible business is not formed by the splitting up, or the reconstruction, of a business already in existence; (ii) the eligible business is not formed by the transfer to a new business of a building previously used as a hotel or a convention centre, as the case may be; (iii) the eligible business is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation .—The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section; (iv) the assessee furnishes along with 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. (4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or section 10AA, in relation to the profits and gains of the undertaking. (5) The provisions contained in sub-section (5) and sub-sections (8) to (11) of section 80-IA shall, so far as may be, apply to the eligible business under this section. (6) For the purposes of this section,— (a) "convention centre" means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed; (b) "hotel" means a hotel of two-star, three-star or four-star category as classified by the Central Government; 1. Ins. by Act 22 of 2007, s. 31 (w.e.f. 1-4-2008). 2. Subs. by Act 14 of 2010, s. 28, for "the 31st day of March, 2010" (w.e.f. 1-4-2011). 3. Ins. by Act 18 of 2008, s. 19 (w.e.f. 1-4-2009). (c) "initial assessment year"— (i) in the case of a hotel, means the assessment year relevant to the previous year in which the business of the hotel starts functioning; (ii) in the case of a convention centre, means the assessment year relevant to the previous year in which the convention centre starts operating on a commercial basis; (d) "specified area" means the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad;] 1 [(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the Table below, of the States, specified in the corresponding entry in column (3) of the said Table: ||1[(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the Table below, of the States, specified in the corresponding entry in column (3) of the said Table:| |---|---| ||TABLE| ||S.No. Name of district Name of State (1) (2) (3) 1. Agra Uttar Pradesh 2. Jalgaon Maharashtra 3. Aurangabad Maharashtra 4. Kancheepuram Tamil Nadu 5. Puri Orissa 6. Bharatpur Rajasthan 7. Chhatarpur Madhya Pradesh 8. Thanjavur Tamil Nadu 9. Bellary Karnataka 10. South 24 Parganas West Bengal (excluding areas falling within the Kolkata urban agglomeration on the basis of the 2001 census) 11. Chamoli Uttarakhand 12. Raisen Madhya Pradesh 13. Gaya Bihar 14. Bhopal Madhya Pradesh 15. Panchmahal Gujarat 16. Kamrup Assam 17. Goalpara Assam 18. Nagaon Assam 19. North Goa Goa 20. South Goa Goa 21. Darjeeling West Bengal 22. Nilgiri Tamil Nadu.]| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| ||| 1. Ins. by Act 18 of 2008, s. 19 (w.e.f. 1-4-2009). 1[ 80-IE. Special provisions in respect of certain undertakings in North-Eastern States. —(1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking, to which this section applies, from any business referred to in sub-section (2), there shall be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for ten consecutive assessment years commencing with the initial assessment year. (2) This section applies to any undertaking which has, during the period beginning on the 1st day of April, 2007 and ending before the 1st day of April, 2017, begun or begins, in any of the North-Eastern States,— (i) to manufacture or produce any eligible article or thing; (ii) to undertake substantial expansion to manufacture or produce any eligible article or thing; (iii) to carry on any eligible business. (3) This section applies to any undertaking which fulfils all the following conditions, namely:— (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 undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as referred to in section 33B, in the circumstances and within the period specified in the said section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation .—The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause ( ii sub-section. for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause (ii) of that (4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or in section 10A or section 10AA or section 10B or section 10BA, in relation to the profits and gains of the undertaking. (5) Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking under this section, where the total period of deduction inclusive of the period of deduction under this section, or under section 80-IC or under the second proviso to sub-section (4) of section 80-IB or under section 10C, as the case may be, exceeds ten assessment years. (6) The provisions contained in sub-section (5) and sub-sections (7) to (12) of section 80-IA shall, so far as may be, apply to the eligible undertaking under this section. 1. Ins. by Act 22 of 2007, s. 32 (w.e.f. 1-4-2008). (7) For the purposes of this section,—

Source: India Code