Section 80 LA of Income Tax Act "Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre"
80LA. 43[(1) Where the gross total income of an assessee, being a scheduled bank,or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to-
(a) one hundred per cent of such income for five
consecutive assessment years beginning with the assessment
year relevant to the previous year in which the permission,
under clause (a) of sub-section (1) of section 23 of the
Banking Regulation Act, 1949 (10 of 1949) or permission or
registration under the Securities and Exchange Board of
India Act, 1992 (15 of 1992) or any other relevant law was
obtained, and thereafter;
(b) fifty per cent of such income for five consecutive
assessment years.
(1A) Where the gross total income of an assessee, being a
Unit of an International Financial Services Centre, includes
any income referred to in sub-section (2), there shall be
allowed, in accordance with and subject to the provisions of
this section, a deduction from such income, of an amount
equal to one hundred per cent of such income for any ten
consecutive assessment years, at the option of the assessee,
out of fifteen years, beginning with the assessment year
relevant to the previous year in which the permission, under
clause (a) of sub-section (1) of section 23 of the Banking
Regulation Act, 1949 (10 of 1949) or permission or
registration under the Securities and Exchange Board of
India Act, 1992 (15 of 1992) or any other relevant law was
obtained.]
(2) The income referred to in sub-section (1) 44[and
sub-section (1A)] shall be the income-
(a) from an Offshore Banking Unit in a Special Economic
Zone; or
(b) from the business referred to in sub-section (1) of
section 6 of the Banking Regulation Act, 1949 (10 of 1949)
with an undertaking located in a Special Economic Zone or
any other undertaking which develops, develops and operates
or develops, operates and maintains a Special Economic Zone;
or
(c) from any Unit of the International Financial Services
Centre from its business for which it has been approved for
setting up in such a Centre in a Special Economic Zone.
(3) No deduction under this section shall be allowed unless
the assessee furnishes along with the return of income,-
(i) the report, in the form specified by the Central Board
of Direct Taxes under clause (i) of sub-section (2) of
section 80LA, as it stood immediately before its
substitution by this section, of an accountant as defined in
the Explanation below sub-section (2) of section 288,
certifying that the deduction has been correctly claimed in
accordance with the provisions of this section; and
(ii) a copy of the permission obtained under clause (a) of
sub-section (1) of section 23 of the Banking Regulation Act,
1949 (10 of 1949).
Explanation.-For the purposes of this section,-
(a) "International Financial Services Centre" shall have the
same meaning as assigned to it in clause (q) of section 2 of
the Special Economic Zones Act, 2005;
(b) "scheduled bank" shall have the same meaning as assigned
to it in clause (e) of section 2 of the Reserve Bank of
India Act, 1934 (2 of 1934);
(c) "Special Economic Zone" shall have the same meaning as
assigned to it in clause (za) of section 2 of the Special
Economic Zones Act, 2005;
(d) "Unit" shall have the same meaning as assigned to it in
clause (zc) of section 2 of the Special Economic Zones Act,
2005.