Amendment of section 80-IB.
42. In section 80-IB of the Income-tax Act, in sub-section (9), with effect from the 1st day of April, 2017,-
(a) in clause (ii), after the words, figures and letters “the 1st day of April, 1997”, the words, figures and letters “but not later than the 31st day of March, 2017” shall be inserted;
(b) in clause (iv), after the words, figures and letters “the 1st day of April, 2009”, the words, figures and letters “but not later than the 31st day of March, 2017” shall be inserted;
(c) in clause (v), after the words, figures and letters “the 1st day of April, 2009”, the words, figures and letters “but not later than the 31st day of March, 2017” shall be inserted.
Notes on Clauses:
Clause 42 of the Bill seeks to amend section 80-IB of the Incometax Act relating to deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings.
Sub-section (9) of the aforesaid section, inter alia, provides deduction at the rate of one hundred per cent. of the profits of an undertaking located in specified areas subject to fulfilment of certain conditions.
It is proposed to amend clauses (ii), (iv) and (v) of the said subsection so as to provide that such clauses of the said section shall not apply to any enterprise which commences the business activity on or after the 1st day of April, 2017.
These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017- 2018 and subsequent years.
