Section 80-IAB of Income Tax Act "Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone"
80-IAB. (1) Where the gross total income of an assessee, being a Developer, includes any profits and gains derived by an undertaking or an enterprise from any business of developing a Special Economic Zone, notified on or after the 1st day of April, 2005 under the Special Economic Zones Act, 2005, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains derived from such business for ten consecutive assessment years:
Provided that the provisions of this section shall not
apply to an assessee, being a developer, where the
development of Special Economic Zone begins on or after the
1st day of April, 2017.
(2) The deduction specified in sub-section (1) may, at the
option of the assessee, be claimed by him for any ten
consecutive assessment years out of fifteen years beginning
from the year in which a Special Economic Zone has been
notified by the Central Government :
Provided that where in computing the total income of any
undertaking, being a Developer for any assessment year, its
profits and gains had not been included by application of
the provisions of sub-section (13) of section 80-IA, the
undertaking being the Developer shall be entitled to
deduction referred to in this section only for the unexpired
period of ten consecutive assessment years and thereafter it
shall be eligible for deduction from income as provided in
sub-section (1) or sub-section (2), as the case may be :
Provided further that in a case where an undertaking, being
a Developer who develops a Special Economic Zone on or after
the 1st day of April, 2005 and transfers the operation and
maintenance of such Special Economic Zone to another
Developer (hereafter in this section referred to as the
transferee Developer), the deduction under sub-section (1)
shall be allowed to such transferee Developer for the
remaining period in the ten consecutive assessment years as
if the operation and maintenance were not so transferred to
the transferee Developer.
(3) The provisions of sub-section (5) and sub-sections (7)
to (12) of section 80-IA shall apply to the Special Economic
Zones for the purpose of allowing deductions under
sub-section (1).
Explanation.-For the purposes of this section, "Developer"
and "Special Economic Zone" shall have the same meanings
respectively as assigned to them in clauses (g) and (za) of
section 2 of the Special Economic Zones Act, 2005.