India - Income Tax Act 2010 - Saarc

S. 80HHB I.T. ACT, 1961 1.420notified area committee, town area committee, town committeeor by any other name) or a cantonment board and which has apopulation of not less than ten thousand according to the lastpreceding census of which the relevant figures have been publishedbefore the first day of the previous year ; or(ii) an area within such distance, not being more than fifteen kilometresfrom the local limits of any municipality or cantonmentboard referred to in sub-clause (i), as the Central Governmentmay, having regard to the stage of development of such area(including the extent of, and scope for, urbanisation of such area)and other relevant considerations specify in this behalf by notification24 in the Official Gazette ;]25[(b) an industrial undertaking shall be deemed to be a small-scale industrialundertaking which is, on the last day of the previous year,regarded as a small-scale industrial undertaking under section 11B 26of the Industries (Development and Regulation) Act, 1951 (65 of1951)].27[Deduction in respect of profits and gains from projects outside India.2880HHB. (1) Where the gross total income of an assessee being an Indiancompany or a person (other than a company) who is resident in Indiaincludes any profits and gains derived from the business of 29 —(a) the execution of a foreign project 29 undertaken by the assessee inpursuance of a contract entered into by him, or(b) the execution of any work undertaken by him and forming part of aforeign project 30 undertaken by any other person in pursuance of acontract entered into by such other person,with the Government of a foreign State or any statutory or other public authorityor agency in a foreign State, or a foreign enterprise, there shall, in accordancewith and subject to the provisions of this section, be allowed, in computing thetotal income of the assessee, 31 [a deduction from such profits and gains of anamount equal to—24. For specified areas, see Taxmann’s Direct Taxes Circulars.25. Substituted by the Finance Act, 1999, w.r.e.f. 1-4-1978. Prior to its substitution, clause (b)was amended by the Finance Act, 1981, w.e.f. 1-4-1981 and Finance Act, 1986, w.r.e.f.1-4-1985.26. For text of section 11B of the Industries (Development and Regulation) Act, 1951, seeAppendix.27. Inserted by the Finance Act, 1982, w.e.f. 1-4-1983.28. See also Circular No. 563, dated 23-5-1990, Circular No. 575, dated 31-8-1990 and CircularNo. 711, dated 24-7-1995. For details, see Taxmann’s Master Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.29. For the meaning of the expression “business of the execution of a foreign project”, seeTaxmann’s Direct Taxes Manual, Vol. 3.30. For the meaning of the expression “forming part of a foreign project”, see Taxmann’sDirect Taxes Manual, Vol. 3.31. Substituted for “a deduction from such profits and gains of an amount equal to fifty percent thereof” by the Finance Act, 2000, w.e.f. 1-4-2001. Prior to its substitution, the quotedportion was amended by the Income-tax (Amendment) Act, 1986, w.e.f. 1-4-1987.