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80ID Deduction of profits and gains from business of hotels and convention centers in specified area as per section 80ID, chapter via of Income Tax Act

 

If the gross total income of an assessee includes any profits and gains derived by an undertaking from any business referred to in sub-section (2) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for five consecutive assessment years beginning from the initial assessment year.

 

 

 

Provisions in the Income Tax Act related to Section 80ID

80ID(1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking from any business referred to in sub-section (2) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for five consecutive assessment years beginning from the initial assessment year.
 

(2) This section applies to any undertaking,-
(i) engaged in the business of hotel located in the specified area, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2007 and ending on [the 31st day of July, 2010]; or
 

(ii) engaged in the business of building, owning and operating a convention centre, located in the specified area, if such convention centre is constructed at any time during the period beginning on the 1st day of April, 2007 and ending on [the 31st day of July, 2010]; [or]
 

(iii) engaged in the business of hotel located in the specified district having a World Heritage Site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.
 

(3) The deduction under sub-section (1) shall be available only if-
(i) the eligible business is not formed by the splitting up, or the reconstruction, of a business already in existence;
 

(ii) the eligible business is not formed by the transfer to a new business of a building previously used as a hotel or a convention centre, as the case may be;
 

(iii) the eligible business is not formed by the transfer to a new business of machinery or plant previously used for any purpose.
 

Explanation.-The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section;
 

(iv) the assessee furnishes along with the return of income, the report of an audit in such form and containing such particulars as may be prescribed46, and duly signed and verified by an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed.
 

(4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or section 10AA, in relation to the profits and gains of the undertaking.
 

(5) The provisions contained in sub-section (5) and sub-sections (8) to (11) of section 80-IA shall, so far as may be, apply to the eligible business under this section.
 

(6) For the purposes of this section,-
 

(a) "convention centre" means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed;
 

(b) "hotel" means a hotel of two-star, three-star or four-star category as classified by the Central Government;
 

(c) "initial assessment year"-
(i) in the case of a hotel, means the assessment year relevant to the previous year in which the business of the hotel starts functioning;
(ii) in the case of a convention centre, means the assessment year relevant to the previous year in which the convention centre starts operating on a commercial basis;
 

(d) "specified area" means the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad;]
 

(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the Table below, of the States, specified in the corresponding entry in column (3) of the said Table:

 

 

Income Tax Deductions under Chapter VIA

Section 80A Deductions to be made in computing taxable income as per section 80A, chapter via of Income Tax Act

Section 80AB Any deduction is required to be made or allowed under any section included in Chapter VIA under the heading "C"

Section 80AC Income Tax return needs be filed before due date to get deduction under few sections of VIA

Section 80B meaning of Gross Total Income under Income Tax Act

Section 80C Deduction in respect of LIC Premia, deferred annuity, PF contributions subscription to certain equity shares or debentures, etc.

Section 80CCA Deduction available to assessee in respect of deposits under National Savings Scheme or payment to a deferred annuity plan

Section 80CCB Deduction in respect of investment made under Equity Linked Savings Scheme

Section 80CCC Deduction in respect of contribution to certain pension funds

Section 80CCD Deduction in respect of contribution to pension scheme of Central Government

Section 80CCE Limit on deductions under sections Section 80C, 80CCC and 80CCD

Section 80CCG Deduction in respect of investment made under an equity savings scheme

Section 80D Deduction in respect of health insurance premia

Section 80DD Deduction of of maintenance including medical treatment of a dependant person with disability

Section 80DDB Deduction against Medical Treatment Expenses etc incurred

Section 80E Deduction against interest on loan taken for higher education

Section 80EE Deduction against interest on loan taken for residential house property

Section 80G Deduction against donations to certain funds, charitable institutions, etc

Section 80GG Deductions against rents paid

Section 80GGA Deduction in respect of certain donations for scientific research or rural development

Section 80GGB Deduction in respect of contributions given by companies to political parties

Section 80GGC Deduction against contributions given by any person to political parties

Section 80HH Deduction against profits and gains from newly established industrial undertakings or hotel business in backward areas

Section 80HHA Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas

Section 80HHB Deduction in respect of profits and gains from projects outside India

Section 80HHBA Deduction against profits and gains from housing projects in certain cases

Section 80HHC Deduction in respect of profits retained for export business

Section 80HHD Deduction of earnings in convertible foreign exchange

Section 80HHE Deduction of profits from export of computer software

Section 80HHF Deduction of profits and gains from export or transfer of film software, etc

Section 80I Deduction profits and gains from industrial undertakings after a certain date, etc

Section 80IA Deductions of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc

Section 80IAB Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone

Section 80IB Deduction of profits and gains from certain industrial undertakings other than infrastructure development undertakings

Section 80IC Special provisions of certain undertakings or enterprises in certain special category States

Section 80ID Deduction of profits and gains from business of hotels and convention centres in specified area

Section 80IE Special provisions in respect of certain undertakings in North-Eastern Statesa>

Section 80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

Section 80JJAA Deduction of employment of new workmen

Section 80LA Deductions of certain incomes of Offshore Banking Units and International Financial Services Centre

Section 80O Deduction of royalties, etc., from certain foreign enterprises

Section 80P Deduction of income of co-operative societies

Section 80Q Deduction of profits and gains from the business of publication of books

Section 80QQA Deduction of professional income of authors of text books in Indian languages

Section 80QB Deduction of royalty income, etc., of authors of certain books other than text-books

Section 80R Deduction of remuneration from certain foreign sources in the case of professors, teachers, etc

Section 80RR Deduction of professional income from foreign sources in certain cases

Section 80RRA Deduction of remuneration received for services rendered outside India

Section 80RRB Deduction of royalty on patents

Section 80TTA Deduction of interest on deposits in savings account

Section 80U Deduction in case of a person with disability

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