What is Sunset Clause ?

1. In public policy, a sunset provision or sunset clause is a provision in a statute or regulation that terminates or repeals all or portions of the law after a specific date, unless further legislative action is taken to extend it. Most laws do not have sunset clauses; in such cases, the law goes on indefinitely.

2. A statement added to the end of a measure which causes the act to "sunset," or become ineffective, after a certain date.
 

3. A clause in a contract with a label or manager allowing them to demand fees beyond the termination date of the contract. Usually added where there are large advance fees involved, as with a new artist.

This is generally associated with Exemption Sections.

The Exemption under Income Tax such as 10A, 10AA, 10B is available only till upto particular Assessment Year.

After that AY, there will be no exemption. The AY upto which the exemption will be given is given vide a clause in the respective section.

This is called Sunset Clause, i.e., after the year from which there will be no exemption, the exemption comes to an end.

Shiva

A clause in a statute providing that the Act or part of it will cease to have effect at some future time.

all are right

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r u satisfy or not

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Rightly said by all.

As far as Direct Tax provisions are concerned it applies also to Chapter VI A deductions Section 80IA to 80IE along with sec 10A, 10AA and 10B as stated above.

Perfect Answer.

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