Section 80-ID of Income Tax Act "Deduction in respect of profits and gains from business of hotels and convention centres in specified area"
80-ID. (1) Where the gross total income of an assessee
includes any profits and gains derived by an undertaking
from any business referred to in sub-section (2) (such
business being hereinafter referred to as the eligible
business), 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 hundred per cent of the profits and gains derived from
such business for five consecutive assessment years
beginning from the initial assessment year.
(2) This section applies to any undertaking,-
(i) engaged in the business of hotel located in the
specified area, if such hotel is constructed and has started
or starts functioning at any time during the period
beginning on the 1st day of April, 2007 and ending on the
31st day of July, 2010; or
(ii) engaged in the business of building, owning and
operating a convention centre, located in the specified
area, if such convention centre is constructed at any time
during the period beginning on the 1st day of April, 2007
and ending on the 31st day of July, 2010; or
(iii) engaged in the business of hotel located in the
specified district having a World Heritage Site, if such
hotel is constructed and has started or starts functioning
at any time during the period beginning on the 1st day of
April, 2008 and ending on the 31st day of March, 2013.
(3) The deduction under sub-section (1) shall be available
only if-
(i) the eligible business is not formed by the splitting up,
or the reconstruction, of a business already in existence;
(ii) the eligible business is not formed by the transfer to
a new business of a building previously used as a hotel or a
convention centre, as the case may be;
(iii) the eligible business is not formed by the transfer to
a new business of machinery or plant previously used for any
purpose.
Explanation.-The provisions of Explanations 1 and 2 to
sub-section (3) of section 80-IA shall apply for the
purposes of clause (iii) of this sub-section as they apply
for the purposes of clause (ii) of that sub-section;
(iv) the assessee furnishes along with the return of income,
the report of an audit in such form and containing such
particulars as may be prescribed, and duly signed and
verified by an accountant, as defined in the Explanation
below sub-section (2) of section 288, certifying that the
deduction has been correctly claimed.
(4) Notwithstanding anything contained in any other
provision of this Act, in computing the total income of the
assessee, no deduction shall be allowed under any other
section contained in Chapter VIA or section 10AA, in
relation to the profits and gains of the undertaking.
(5) The provisions contained in sub-section (5) and
sub-sections (8) to (11) of section 80-IA shall, so far as
may be, apply to the eligible business under this section.
(6) For the purposes of this section,-
(a) "convention centre" means a building of a prescribed
area comprising of convention halls to be used for the
purpose of holding conferences and seminars, being of such
size and number and having such other facilities and
amenities, as may be prescribed;
(b) "hotel" means a hotel of two-star, three-star or
four-star category as classified by the Central Government;
(c) "initial assessment year"-
(i) in the case of a hotel, means the assessment year
relevant to the previous year in which the business of the
hotel starts functioning;
(ii) in the case of a convention centre, means the
assessment year relevant to the previous year in which the
convention centre starts operating on a commercial basis;
(d) "specified area" means the National Capital Territory of
Delhi and the districts of Faridabad, Gurgaon, Gautam Budh
Nagar and Ghaziabad;
(e) "specified district having a World Heritage Site" means
districts, specified in column (2) of the Table below, of
the States, specified in the corresponding entry in column
(3) of the said Table:
| Name of District | Name of State |
|
Agra Jalgaon Aurangabad Kancheepuram Puri Bharatpur Chhatarpur Thanjavur Bellary South 24 Parganas Chamoli Raisen Gaya Bhopal Panchmahal Kamrup Goalpara Nagaon North Goa South Goa Darjeeling Nilgiri |
Uttar Pradesh Maharashtra Maharashtra Tamil Nadu Orissa Rajasthan Madhya Pradesh Tamil Nadu Karnataka West Bengal Uttarakhand Madhya Pradesh Bihar Madhya Pradesh Gujarat Assam Assam Assam Goa Goa West Bengal Tamil Nadu. |
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