Section 11 - Amendment of section 80HHC - Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986

11. Amendment of section 80HHC. In section 80HHC of the Income-tax Act, with effect from the 1st day of April, 1987, - (a) in sub-section (1), for the portion beginning with the words deduction of an amount and ending with the words Provided that , the following shall be substituted, namely :- deduction equal to the aggregate of- (a) four per cent. of the net foreign exchange realisation; and (b) fifty per cent. of so much of the profits derived by the assessee from the export of such goods or merchandise as exceeds the amount referred to in clause (a) : Provided that the deduction under this sub-section shall not exceed the profits derived by the assessee from the export of such goods or merchandise: Provided further that ; (b) after sub-section (3) and before the Explanation, the following sub-section shall be inserted, namely :- (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 on the basis of the amount of net foreign exchange realisation as determined in accordance with the Import and Export Policy of the Government of India for the relevant period. ; (c) after clause (b) of the Explanation, the following clause shall be inserted, namely: - (c) net foreign exchange realisation means the total free on board value of exports out of India of goods and merchandise, to which this section applies as reduced by the aggregate of the cost, insurance and freight value of all categories of import licences, to be issued by the Chief Controller of Imports and Exports, Government of India, to which the assessee is entitled during the previous year, either against export obligation or against exports as replenishments. .