India - Income Tax Act 2010 - Saarc

S. 10AA I.T. ACT, 1961 1.110(vi) “relevant assessment year” means any assessment year falling withina period of ten consecutive assessment years referred to in thissection;(vii) “software technology park” means any park set up in accordance withthe Software Technology Park Scheme notified 11 by the Governmentof India in the Ministry of Commerce and Industry;(viii) “special economic zone” means a zone which the Central Governmentmay, by notification in the Official Gazette, specify as a specialeconomic zone for the purposes of this section.]12[Explanation 3.—For the removal of doubts, it is hereby declared that theprofits and gains derived from on site development of computer software(including services for development of software) outside India shall be deemedto be the profits and gains derived from the export of computer software outsideIndia.]13[Explanation 4.—For the purposes of this section, “manufacture or produce”shall include the cutting and polishing of precious and semi-precious stones.]14[Special provisions in respect of newly established Units in Special EconomicZones.10AA. (1) Subject to the provisions of this section, in computing the totalincome of an assessee, being an entrepreneur as referred to in clause (j)of section 2 15 of the Special Economic Zones Act, 2005, from his Unit, who beginsto manufacture or produce articles or things or provide any services during theprevious year relevant to any assessment year commencing on or after the 1stday of April, 2006, a deduction of—(i) hundred per cent of profits and gains derived from the export, of sucharticles or things or from services for a period of five consecutiveassessment years beginning with the assessment year relevant to theprevious year in which the Unit begins to manufacture or producesuch articles or things or provide services, as the case may be, and fiftyper cent of such profits and gains for further five assessment yearsand thereafter;(ii) for the next five 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 Reserve Account”)to be created and utilized for the purposes of the business of theassessee in the manner laid down in sub-section (2).(2) The deduction under clause (ii) of sub-section (1) shall be allowed only if thefollowing conditions are fulfilled, namely :—11. For notified Free Trade Zones, see Taxmann’s Master Guide to Income-tax Act.12. Inserted by the Finance Act, 2001, w.e.f. 1-4-2001.13. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.14. Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006.15. See Appendix.