India - Income Tax Act 2010 - Saarc

S. 80HHD I.T. ACT, 1961 1.434(d) for an assessment year beginning on the 1st day of April, 2004, adeduction of a sum equal to the aggregate of—(i) 8 [fifteen] per cent of the profits derived by him from servicesprovided to foreign tourists; and(ii) so much of the amount not exceeding 8 [fifteen] per cent of theprofits referred to in sub-clause (i) as is debited to the profit andloss account of the previous year in respect of which the deductionis to be allowed and credited to a reserve account to beutilised for the purposes of the business of the assessee in themanner laid down in sub-section (4),and no deduction shall be allowed in respect of the assessment year beginningon the 1st day of April, 2005 and any subsequent assessment year] :9[Provided that a hotel or, as the case may be, a tour operator approved by theprescribed authority on or after the 30th day of November, 1989 and before the1st day of October, 1991, shall be deemed to have been approved by theprescribed authority for the purposes of this section in relation to the assessmentyear commencing on the 1st day of April, 1989 or the 1st day of April, 1990 or, asthe case may be, the 1st day of April, 1991 if the assessee was engaged in thebusiness of such hotel or as such tour operator during the previous year relevantto any of the said assessment years.](2) This section applies only to services provided to foreign tourists the receiptsin relation to which are received 10 [in, or brought into, India by the assessee inconvertible foreign exchange within a period of six months from the end of theprevious year or, 11 [within such further period as the competent authority mayallow in this behalf].]12[Explanation 13 [1].—For the purposes of this sub-section, any payment receivedby an assessee, engaged in the business of a hotel or of a tour operator or of atravel agent, in Indian currency obtained by conversion of foreign exchangebrought into India through an authorised dealer, 14 [from another hotelier, touroperator or travel agent, as the case may be,] on behalf of a foreign tourist orgroup of foreign tourists, shall be deemed to have been received by the assessee8. Substituted for “ten” by the Finance Act, 2002, w.e.f. 1-4-2003.9. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.10. Substituted for “by the assessee in convertible foreign exchange” by the Finance Act, 1990,w.e.f. 1-4-1991.11. Substituted for the portion beginning with the words “where the Chief Commissioner” andending with the words “may allow in this behalf” by the Finance Act, 1999, w.e.f. 1-6-1999.Prior to substitution, the quoted portion, as amended by the Finance Act, 1990, w.e.f.1-4-1991, read as under :“where the Chief Commissioner or Commissioner is satisfied (for reasons to be recordedin writing) that the assessee is, for reasons beyond his control, unable to do so within thesaid period of six months, within such further period as the Chief Commissioner orCommissioner may allow in this behalf.”12. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992.13. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.14. Substituted for “from a tour operator or, as the case may be, a travel agent” by the FinanceAct, 1994, w.e.f. 1-4-1995.