Amendment of section 80-IAC.
25. In section 80-IAC of the Income-tax Act, in the Explanation, in clause (ii), in sub-clause (a), for the figures “2021”, the figures “2022” shall be substituted.
Notes on Clauses:
Clause 25 of the Bill seeks to amend section 80-IAC of the Income-tax Act relating to special provision in respect of specified business.
The existing provisions of the section 80-IAC of the said Act, inter alia, provide for a deduction of an amount equal to one hundred per cent. of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years at the option of the assessee subject to the condition that the total turnover of its business does not exceed one hundred crore rupees for an eligible start-up incorporated on or after the 1st day of April, 2016 but before the 1st day of April, 2021.
It is proposed to extend the period of incorporation of such eligible start-ups till 1st day of April, 2022.
This amendment will take effect from the 1st April, 2021.
