deduction under section 80-IB(11A)

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k

41 Points Posted on 27 January 2009

QUESTION: ABC Ltd and Xyz firm are two concerns deriving profits from processing, preservation and and packaging of fruits and vegetables since 1994. My queries:

Can they claim deduction u/s 80-IB (11A) i.e. tax holidays even if the said deduction had come into existence from 1-4-2005 and these units pre exists on the date of effect of the said deduction?
If yes, then can these units claim deductions under the said sections even if they have skipped the same in their previous IT returns by revising their returns?
The said provisions of the Act will be applicable if the concerns starts a new unit anywhere in India in the next fiscal year? If yes what are the conditions applicable to claim the deduction? Are there any approval of any authorities required before establishing an unit to be eligible for the deduction?

I request you learned guys to elaborate the section lil and provide if you know some online resources in the form of links, downloads etc.

Replies (3)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Posted on 05 February 2010

Mr.K

Sub-section (11A) has been inserted by Finance Act, 2001 w.e.f. 1.04.2002. The section applies to the undertaking which begins the (business) operations mentioned in the section on or after 1.04.2001.

Recently Finance No.2 Act, 2009 has inserted a proviso to section 80IB(11A). As per the provsio the the provsions of the section shall not apply to undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine products it it begins to operate such business before 1st day of April, 2009.

Hope you have got the clarification.

Best Wishes

Sathikonda