Income Tax Exemption to 100% EOUs

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CA Manikandan.A.V (Querist)
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22 December 2009 Sir,

A company having an existing unit dealing in Exports want to start a new 100% Export Oriented Unit. Is there any tax exemptions in this regard. Please reply.

Advance Thanks,

Manikandan.A.V

ANIL JANGID

ANIL JANGID (Expert)
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22 December 2009 EOU units can avail the exemption from payment of corporate income tax in terms of Section 10 B of the Income Tax Act, 1961. Under the provisions of the said section, the entire profits of the EOU would be eligible for a deduction for a 10-year period from the date of start of commercial production. The deduction is subject to an overall expiry date of March 31, 2009.

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
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23 December 2009 Yes you can cliam deduction as said by anil but it is upto year ending 31st march,2012.
Provided also that no deduction under this section shall be allowed to any
undertaking for the assessment year beginning on the 1st day of April,2012
and subsequent years

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