TMI BlogDeduction in respect of profit and gains from undertakings engaged in Infrastructure Development etc. - Section 80-IAX X X X Extracts X X X X X X X X Extracts X X X X ..... t etc. - Section 80-IA A. Eligible Assessee I. Any assessee carrying on the business of: i. developing, or ii. operating and maintaining or iii. developing, operating and maintaining any infrastructure facility. Note: Infrastructure facility means a road including toll road, a bridge or a rail system a highway Project including housing or other activities being an integral part of the highway project a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system a port, airport, inland waterway or inland port or navigational channel in the sea (from the A.Y. 2008-09). Requirements: The deduction for the infrastructure facilities is applicable to a company that is owned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore 31st December 2005. It should start to generate, transmit or distribute power before 31st March 2011. The deduction under section 80-IA shall be 100% of the profits and gains derived from the eligible business for a period of 10 consecutive assessment years . However, in case of telecommunication services, the deduction under section 80-IA shall be 100% of the profit and gains for the first 5 assessment years and thereafter 30% of such profits and gains for further 5 assessment years. i. The deduction may at the option of the assessee be claimed by him for any 10 consecutive assessment years out of 15 years beginning with the year in which assessee starts the above business. This is known as Period of Tax Holiday/concession. If the ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the accounts of an assessee, which is required to be furnished u/s 80-IA(7) shall be in Form No. 10CCB. iii. A separate report is to be furnished by each undertaking or enterprise of the assessee claiming deduction under section 80-IA or 80-IB or 80-IC and shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. C. Limit of Deduction i. The deductions claimed and allowed under this section shall not exceed the profits and gains of the eligible business. ii. Further, where deduction is claimed and allowed under this section for any assessment year no deduction in respect of such profits will be allowed under any other section under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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