India - Income Tax Act 2010 - Saarc

S. 80LA I.T. ACT, 1961 1.49013[Deductions in respect of certain incomes of Offshore Banking Units andInternational Financial Services Centre.80LA. (1) Where the gross total income of an assessee,—(i) being a scheduled bank, or, any bank incorporated by or under thelaws of a country outside India; and having an Offshore Banking Unitin a Special Economic Zone; or(Contd. from p. 1.489)Explanation.—For the purposes of this sub-section, the expression “security” means aGovernment security‡ as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18of 1944).(2) [***](3) For the removal of doubts, it is hereby declared that where the income referred to insub-section (1) is derived from any asset held by, or on behalf of, a firm, an association ofpersons or a body of individuals, no deduction shall be allowed under the said sub-sectionin respect of such income in computing the total income of any partner of the firm or anymember of the association or body.’*See also Press Note, dated 30-3-1982, issued by Press Information Bureau, Circular No.243, dated 22-6-1978, Circular No. 406, dated 15-1-1985, Circular No. 64, dated 25-8-1971and Circular No. 687, dated 19-8-1994. For details and for relevant case laws, seeTaxmann’s Direct Taxes Circulars.**For the meaning of the term “individual”, see Taxmann’s Direct Taxes Manual, Vol. 3.***For complete list of notified debentures, bonds or institutions, see Taxmann’s DirectTaxes Circulars and Taxmann’s Yearly Tax Digest & Referencer.†For National Deposits Scheme, refer Taxmann’s Direct Taxes Circulars. It has since beendiscontinued on and from 1-4-1987 vide Notification No. F. 4(13) W & M/87, dated31-3-1987. See Taxmann’s Direct Taxes Circulars.††For other notified schemes, see Taxmann’s Direct Taxes Circulars.†††For notified banks, see Taxmann’s Direct Taxes Circulars.‡Clause (2) of section 2 of the Public Debt Act, 1944, defines “Government security” asfollows:‘(2) “Government security” means—(a) a security, created and issued, whether before or after the commencement of thisAct, by the Central Government for the purpose of raising a public loan, and havingone of the following forms, namely :—(i) stock transferable by registration in the books of the Bank; or(ii) a promissory note payable to order; or(iii) a bearer bond payable to bearer; or(iv) a form prescribed in this behalf;(b) any other security created and issued by the Central Government in such form andfor such of the purposes of this Act as may be prescribed;’13. Substituted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006. Prior to itssubstitution, section 80LA, as inserted by the Finance Act, 2003, w.e.f. 1-4-2004, read asunder :‘80LA. Deduction in respect of certain incomes of Offshore Banking Units.—(1) Where thegross total income of an assessee,—(i) being a scheduled bank (not being a bank incorporated by or under the laws of acountry outside India);(ii) owning an offshore banking unit in a special economic zone,includes any income referred to in sub-section (2), there shall be allowed, in accordancewith and subject to the provisions of this section, a deduction from such income, of anamount equal to—(Contd. on p. 1.491)