Income Tax

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„ TAX PLANNING IS Relevant From The Location Point Of View. There

Are Certain Locations Which Are Given Special Tax Treatment. „ Full Exemption U/S 10 A For 10 Years In Free Trade Zone(ftz). „ Full Exemption U/S 10 AA In Special Economic Zone (Sez) On Or After 1-4„ „ „ „

2005 Full Exemption U/S 10 B For 10 Years In Case Of 100 % Export Oriented Undertaking. Deductions U/S 80- IAB In The Development Of Special Economic Zone. Deductions U/S 80- IB In Case Of Newly Established Industrial Undertaking In An Industrially Backward State Or District. Deductions U/S 80 IC, In Case Of Newly Established Industrial Undertaking Or Substantial Expansion Of An Existing Undertaking In Certain Special Category State.

e) the exemption Þprescribed form, the report by CA about the claim of deduction. f) if the assessee has more than 1 businessÞ Assessing office shall hav power to recompute the profit. 4. CLAIMING DEDUCTION/ PERIOD FOR WHICH DEDUCTION IS AVAILABLE:1. FIRST 5 CONSECUTIVE YEARÞ 10 % 2. NEXT 5 CONSECUTIVE YEARSÞ 5 % 3. Next 5 consecutive yearsÞ 5% 5. How to compute profit and gains from the export of such undertaking(sec. 10A(4)):profit from business of under taking × Export turnover of under taking by selling article ------------------------------Total Turnover of business 6. Ban on enjoyment of other benefits:a. unabsorbed capital expenditure on scientific research etc will be allowed to carry forward and setoff. b. brought forward losses u/s 72(1), 74(1) and 74(3)Þ not allowed. c. 80 IA, 80 B Þ not allowed

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1. 2. 3.

General:-a Deduction Of Profit & GainsÞ From The Export Of Things/ Articles Or Comp. Software Eligible:- Any Assessee Essential Condition:a) b)

c) d)

Begun To Manufacture The Articles On Or After 1-4-2006 In SEZ Should Not Be Formed By Splitting Up Or Restructuring Of Business. However, DeductionÞas A Result Of Reestablishment, Reconstruction, Or Revival By The Assessee Acc To Section 33b. Should Also Not Formed By Transfer Of Machine/ Plant Previously Used For Any Person, To A New Business. 4.The Sale Proceed Of Article/ Things So Exported Out Of India Þ With In A Period Of 6 Months Before The End Of Previous Year

E) The Exemption ÞPrescribed Form, The Report By CA About The Claim Of Deduction. F) If The Assessee Has More Than 1 BusinessÞ Assessing Office Shall Hav Power To Recompute The Profit. 4. Period Of Tax Holiday:1. No Deduction:- There After 2011-12. 2. On Or After 2001-02Þ Eligible 5. How To Compute Profit And Gains From The Export Of Such Undertaking(sec. 10a(4)):Profit From Business Of Under Taking × Export Turnover Of Under Taking By Selling Article ------------------------------Total Turnover Of Business 6. Ban On Enjoyment Of Other Benefits:A. Unabsorbed Capital Expenditure On Scientific Research Etc Will Be Allowed To Carry Forward And Setoff. B. Brought Forward Losses U/S 72(1), 74(1) And 74(3)Þ Not Allowed. C. 80 IA, 80 B Þ Not Allowed

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General:-a Deduction Of Profit & GainsÞ From The Export Of Things/ Articles Or Comp. Software 2. Eligible:- Any Assessee 3. Essential Condition:1.

a) b) c)

The Undertaking Should Be An Approved 100 % Eou, Must Be Approved By The Board Appointed By Central Governement. It Manufactures Or Produces Any Article Or Thing Or Computer Software. ON the Condtions Same As Of Section 10 A

E) The Exemption ÞPrescribed Form, The Report By CA About The Claim Of Deduction. F) If The Assessee Has More Than 1 BusinessÞ Assessing Office Shall Hav Power To Recompute The Profit. 4. Claiming Deduction/ Period For Which Deduction Is Available:1. First 5 Consecutive YearÞ 10 % 2. Next 5 Consecutive YearsÞ 5 % 3. Next 5 Consecutive YearsÞ 5% 5. How To Compute Profit And Gains From The Export Of Such Undertaking(sec. 10a(4)):Profit From Business Of Under Taking × Export Turnover Of Under Taking By Selling Article ------------------------------Total Turnover Of Business 6. Ban On Enjoyment Of Other Benefits:A. Unabsorbed Capital Expenditure On Scientific Research Etc Will Be Allowed To Carry Forward And Setoff. B. Brought Forward Losses U/S 72(1), 74(1) And 74(3)Þ Not Allowed. C. 80 IA, 80 B Þ Not Allowed

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General:-a Deduction Þ DEVELOPER, ON AFETR 1-4-2005 UDER SEZ ACT 2005 2. QUANTUM OF DEDUCTION:100 % OF THE PROFIT $ GAINS FOR 10 CONSECUTIVE YEARS. 3. CONSEQUENCES OF TRANSFER OF UNDERTAKING:TRANSFEREE DEVELOPER FOR REMAINING 10 YEARS. 4. PROFIT OF ELIGIBLE BUSINESSÞ HOW TO COMPUTE:AS IF SUCH BHUSINESS WAS THE ONLY SOURCE OF INCOME OF THE ASSESSEE. 5.CONDITION PRESCRIBE U/S 80- IA(7) TO 80 IA(12) TO BE APPILCABLE FOR CLAIMING DEDUCTION:1.

A. AUDIT OF ACCOUNTS B. INTER UNTI TRANSFER OF GOODS OR SERVICES. C. RESTRICTION OF DOUBLE DEDUCTION. D. RESTRICTION OF EXCESSIVE PROFIT. E.POWER OF CENTRAL GOVT TO NOTIFY UNDERTAKING TO WHICH SECTION 80 IAB DOESNOT APPLY. F. DEDUCTION IN CASE OF AMALGAMATED / DEMERGER. 6. DEDUCTION NOT TO BE ALLOWED IN CASE WHEN RETURN IS NOT FILLED WITHIN SPECIFIED TIME LIMIT.