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Deduction in respect of profits and gains from projects outside India

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..... uch other person, with the Government of a foreign State or any statutory or other public authority or agency in a foreign State, or a foreign enterprise, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, 2 [ a deduction from such profits and gains of an amount equal to- ( i ) forty per cent thereof for an assessment year beginning on the 1st day of April, 2001; ( ii ) thirty per cent thereof for an assessment year beginning on the 1st day of April, 2002; ( iii ) twenty per cent thereof for an assessment year beginning on the 1st day of April, 2003; ( iv ) ten per cent thereof for an assessment year beginning on the 1st day of April, 200 .....

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..... 288 and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant ; 3 [ ( ia ) the assessee furnishes, along with his return of income, a certificate in the prescribed form from an accountant as defined in the Explanation below sub-section (2) of section 288, duly signed and verified by such accountant, certifying that the deduction has been correctly claimed in accordance with the provisions of this section ;] ( ii ) an amount equal to 4 [ such percentage of the profits and gains as is referred to in sub-section (1) in relation to the relevant assessment year ] is debited to the profit and loss account of the previous year in respect .....

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..... ause ( iii ), the expression competent authority means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.] (4) If at any time before the expiry of five years from the end of the previous year in which the deduction under sub-section (1) is allowed, the assessee utilises the amount credited to the Foreign Projects Reserve Account for distribution by way of dividends or profits or for any other purpose which is not a purpose of the business of the assessee, the deduction originally allowed under sub-section (1) shall be deemed to have been wrongly allowed, and the 9 [ Assessing ] Officer may, notwithstanding anything con .....

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..... tax (Amendment) Act, 1986, w.e.f. 1-4-1987. 5. Substituted for fifty per cent of the profits and gains referred to in sub-section (1) by the Finance Act, 2000, w.e.f. 1-4-2001. Earlier the quoted portion was amended by the Income-tax (Amendment) Act, 1986, w.e.f. 1-4-1987. 6. Substituted for the portion beginning with the words where the Chief Commissioner and ending with the words may allow in this behalf by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to its substitution, the said portion, as amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under : where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyo .....

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