Section 80HHF of Income Tax Act "Deduction in respect of profits and gains from export or transfer of film software, etc"
80HHF. (1) Where an assessee, being an Indian company or
a person (other than a company) resident in India, is
engaged in the business of export or transfer by any means
out of India, of any film software, television software,
music software, television news software, including telecast
rights (hereafter in this section referred to as the
software or software rights), 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 to the extent of profits, referred to in
sub-section (1A), derived by the assessee from such
business.
(1A) For the purposes of sub-section (1), the extent of
deduction of profits shall be an amount equal to-
(i) eighty per cent of such profits for an assessment year
beginning on the 1st day of April, 2001;
(ii) seventy per cent thereof for an assessment year
beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof for an assessment year
beginning on the 1st day of April, 2003;
(iv) thirty per cent thereof for an assessment year
beginning on the 1st day of April, 2004,
and no deduction shall be allowed in respect of the
assessment year beginning on the 1st day of April, 2005 and
any subsequent assessment year.
(2) The deduction specified in sub-section (1) shall be
allowed only if the consideration in respect of the software
or software rights referred to in that sub-section is
received in, or brought into, India by the assessee in
convertible foreign exchange, within a period of six months
from the end of the previous year or within 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 referred to in that sub-section shall be
the amount which bears to the profits of the business, the
same proportion as the export turnover bears to the total
turnover of the business carried on by the assessee.
(4) The deduction under sub-section (1) shall not be
admissible unless the assessee furnishes in the prescribed
form, along with the return of income, the report 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.
(5) Where a deduction under this section is claimed and
allowed in respect of profits of the business referred to in
sub-section (1) for any assessment year, no deduction shall
be allowed in relation to such profits under any other
provision of this Act for the same or any other assessment
year.
(6) Notwithstanding anything contained in this section, no
deduction shall be allowed 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,-
(a) "competent authority" means the Reserve Bank of India or
such other authority as is authorised under any law for the
time being in force for regulating payments and dealings in
foreign exchange;
(b) "convertible foreign exchange" shall have the meaning
assigned to it in clause (a) of the Explanation to section
80HHC;
(c) "export turnover" means the consideration in respect of
the software or software rights specified in clauses (d),
(e), (g), (h) and (i), received in, or brought into, India
by the assessee in convertible foreign exchange in
accordance with sub-section (2), but does not include
freight, telecommunication charges or insurance attributable
to the delivery of such software outside India or expenses,
if any, incurred in foreign exchange in providing the
technical services outside India;
(d) "film software" means a copy of a cinematograph film
made by any process analogous to cinematography on acetate
polyester or celluloid film positive, magnetic tape, digital
media or other optical or magnetic devices and certified by
the Board of film certification constituted by the Central
Government under section 3 of the Cinematograph Act, 1952
(37 of 1952);
(e) "music software" includes series of sounds or music
recorded on magnetic tape, cassette, compact discs and
digital media which can be played or reproduced on any
appropriate apparatus;
(f) "profits of the business" means the profits of the
business as computed under the head "Profits and gains of
business or profession" as reduced by-
(A) ninety per cent of any receipts by way of brokerage,
commission, interest, rent, charges or any other receipt of
a similar nature included in such profits; and
(B) the profits of any branch, office, warehouse or any
other establishment of the assessee situated outside India;
(g) "telecast rights" means a licence or contract to exhibit
motion pictures or television programmes over a television
network either through terrestrial transmission or through a
satellite broadcast in a specified territory;
(h) "television news software" means a collection of sounds
and images, reportage, data and voice of actualities
broadcast either through terrestrial transmission, wire or
satellite, live or pre-recorded on video cassettes or
digital media;
(i) "television software" means any programme or series of
sounds and images recorded on film or tape or digital media
or broadcast through terrestrial transmitter, satellite or
any other means of diffusion;
(j) "total turnover" shall not include-
(A) any sum referred to in clauses (iiia), (iiib) and (iiic)
of section 28;
(B) any freight, telecommunication charges or insurance
attributable to the delivery of the film software, music
software, telecast rights, television news software, or
television software as defined in clause (d), (e), (g), (h)
or (i), as the case may be, outside India;
(C) expenses, if any, incurred in foreign exchange in
providing the technical services outside India.
What is Deduction in respect of health insurance premia? Section 80D of Income Tax Act 1961
What is Deduction in respect of medical treatment, etc? Section 80DDB of Income Tax Act 1961
Section 80EEA Deduction in respect of interest on loan taken for certain house property
Section 80EEB Deduction in respect of purchase of electric vehicle
What is Deductions in respect of rents paid? Section 80GG of Income Tax Act 1961