Amendment of section 80-IAC.
22. In section 80-IAC of the Income-tax Act, in the Explanation below sub-section (4), in clause (ii), in sub-clause (a), for the figures “2022”, the figures “2023” shall be substituted.
Notes on Clauses:
Clause 22 seeks to amend section 80-IAC of the Income-tax Act relating to special provision in respect of specified business.
The provisions of the said section, 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, beginning from the year of incorporation, at the option of the assesses subject to the condition that,––
(i) the total turnover of its business does not exceed one hundred crore rupees;
(ii) it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification; and
(iii) it is incorporated on or after the 1st day of April, 2016 but before the 1st day of April 2022.
It is proposed to amend sub-clause (a) of clause (ii) of the Explanation occurring after sub-section (4) of the said section so as to extend the period of incorporation of eligible startups to the 1st day of April, 2023.
This amendment will take effect from 1st April, 2022 and will, accordingly, apply in relation to the assessment year 2022-2023 and subsequent assessment years.
