Clause 15 - Amendment of Section 80-IB - Finance Bill, 2008

15. In section 80-IB of the Income-tax Act,— ( a ) in sub-section ( 9 ), after the second proviso, the following proviso shall be inserted, namely:— ''Provided also that no deduction under this sub-section shall be allowed to an undertaking engaged in refining of mineral oil, if it begins refining on or after the 1 st day of April, 2009."; ( b ) after sub-section ( 11B ), the following sub-section shall be inserted with effect from the 1 st day of April, 2009, namely:— '( 11C ) The amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital located anywhere in India, other than the excluded area, shall be hundred per cent. of the profits and gains derived from such business for a period of five consecutive assessment years, beginning with the initial assessment year, if- ( i ) the hospital is constructed and has started or starts functioning at any time during the period beginning on the 1 st day of April, 2008 and ending on the 31 st day of March, 2013; ( ii ) the hospital has at least one hundred beds for patients; ( iii ) the construction of the hospital is in accordance with the regulations or bye-laws of the local authority; and ( iv ) the assessee furnishes along with the return of income, a report of audit in such form and containing such particulars, as may be prescribed, and duly signed and verified by an accountant, as defined in the Explanation to sub-section ( 2 ) of section 288, certifying that the deduction has been correctly claimed. Explanation .— For the purposes of this sub-section,— ( a ) a hospital shall be deemed to have been constructed on the date on which a completion certificate in respect of such construction is issued by the local authority concerned; ( b ) "initial assessment year" means the assessment year relevant to the previous year in which the business of the hospital starts functioning; (c) "excluded area" shall mean an area comprising- ( i ) Greater Mumbai urban agglomeration; ( ii ) Delhi urban agglomeration; ( iii ) Kolkata urban agglomeration; ( iv ) Chennai urban agglomeration; ( v ) Hyderabad urban agglomeration; ( vi ) Bangalore urban agglomeration; ( vii ) Ahmedabad urban agglomeration; ( viii ) District of Faridabad; ( ix ) District of Gurgaon; ( x ) District of Gautam Budh Nagar; ( xi ) District of Ghaziabad; ( xii ) District of Gandhinagar; and ( xiii ) City of Secunderabad; ( d ) the area comprising an urban agglomeration shall be the area included in such urban agglomeration on the basis of the 2001 census.'.