India - Income Tax Act 2010 - Saarc

S. 10A I.T. ACT, 1961 1.104zone by reason of conversion of such free trade zone or export processing zoneinto a special economic zone, the period of ten consecutive assessment yearsreferred to in this sub-section shall be reckoned from the assessment yearrelevant to the previous year in which the 90 [undertaking began to manufactureor produce such articles or things or computer software] in such free trade zoneor export processing zone :91[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 profitsand gains derived by an undertaking from the export of such articles or thingsor computer software :]Provided also that no deduction under this section shall be allowed to anyundertaking for the assessment year beginning on the 1st day of April, 92 [2012]and subsequent years.93[(1A) Notwithstanding anything contained in sub-section (1), the deduction, incomputing the total income of an undertaking, which begins to manufacture orproduce articles or things or computer software during the previous yearrelevant to any assessment year commencing on or after the 1st day of April,2003, in any special economic zone, shall be,—(i) hundred per cent of profits and gains derived from the export of sucharticles or things or computer software for a period of five consecutiveassessment years beginning with the assessment year relevant tothe previous year in which the undertaking begins to manufacture orproduce such articles or things or computer software, as the case maybe, and thereafter, fifty per cent of such profits and gains for furthertwo consecutive assessment years, and thereafter;(ii) for the next three consecutive assessment years, so much of theamount not exceeding fifty per cent of the profit as is debited to theprofit and loss account of the previous year in respect of which thededuction is to be allowed and credited to a reserve account (to becalled the “Special Economic Zone Re-investment Allowance Re-90. Substituted for “undertaking was first set up” by the Finance Act, 2001, w.e.f. 1-4-2001.91. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. Earlier the third proviso was omitted bythe Finance Act, 2001, w.e.f. 1-4-2002. Prior to omission, third proviso read as under :“Provided also that the profits and gains derived from such domestic sales of articles orthings or computer software as do not exceed twenty-five per cent of total sales shall bedeemed to be the profits and gains derived from the export of articles or things orcomputer software:”92. Substituted for “2011” by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009. Earlier “2011” wassubstituted for “2010” by the Finance Act, 2008, w.e.f. 1-4-2008.93. Sub-sections (1A) to (1C) substituted for sub-section (1A) by the Finance Act, 2003, w.e.f.1-4-2004. Prior to its substitution, sub-section (1A), as inserted by the Finance Act, 2002,w.e.f. 1-4-2003, read as under :“(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computingthe total income of an undertaking, which begins to manufacture or produce articles orthings or computer software during the previous year relevant to any assessment yearcommencing on or after the 1st day of April, 2003, in any special economic zone, shall behundred per cent of profits and gains derived from the export of such articles or thingsor computer software for a period of five consecutive assessment years beginning withthe assessment year relevant to the previous year in which the undertaking begins tomanufacture 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 assessment years.”