India - Income Tax Act 2010 - Saarc

S. 80HHF I.T. ACT, 1961 1.442music software, television news software, including telecast rights (hereafter inthis section referred to as the software or software rights), there shall, inaccordance with and subject to the provisions of this section, be allowed, incomputing the total income of the assessee, 54 [a deduction to the extent ofprofits, referred to in sub-section (1A),] derived by the assessee from such business.55[(1A) For the purposes of sub-section (1), the extent of deduction of profits shallbe an amount equal to—(i) eighty per cent of such profits for an assessment year beginning onthe 1st day of April, 2001;56[(ii) seventy per cent thereof for an assessment year beginning on the 1stday of April, 2002;(iii) fifty per cent thereof for an assessment year beginning on the 1st dayof April, 2003;(iv) thirty per cent thereof for an assessment year beginning on the 1st dayof April, 2004,]and no deduction shall be allowed in respect of the assessment year beginningon the 1st day of April, 2005 and any subsequent assessment year.](2) The deduction specified in sub-section (1) shall be allowed only if theconsideration in respect of the software or software rights referred to in that subsectionis received in, or brought into, India by the assessee in convertible foreignexchange, within a period of six months from the end of the previous year orwithin such further period as the competent authority may allow in this behalf.(3) For the purposes of sub-section (1), profits derived from the business referredto in that sub-section shall be the amount which bears to the profits of thebusiness, the same proportion as the export turnover bears to the total turnoverof the business carried on by the assessee.(4) The deduction under sub-section (1) shall not be admissible unless theassessee furnishes in the prescribed form 57 , along with the return of income, thereport of an accountant, as defined in the Explanation below sub-section (2) ofsection 288, certifying that the deduction has been correctly claimed in accordancewith the provisions of this section.(5) Where a deduction under this section is claimed and allowed in respect ofprofits of the business referred to in sub-section (1) for any assessment year, nodeduction shall be allowed in relation to such profits under any other provisionof this Act for the same or any other assessment year.(6) Notwithstanding anything contained in this section, no deduction shall beallowed in respect of the software or software rights referred to in sub-section(1), if such business is prohibited by any law for the time being in force.Explanation.—For the purposes of this section,—54. Substituted for “a deduction of the profits” by the Finance Act, 2000, w.e.f. 1-4-2001.55. Inserted, ibid.56. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002.57. See rule 18BBA(9) and Form No. 10CCAI.