Adjustment of brought forward losses and unabsorbed depreciation, applicable only from the initial assessment year in case of eligible business

Backdrop:- Section 80-IA of the Income-tax Act, 1961 (ITA) deals with tax holidays for eligible businesses. Sub-section (5) of section 80-IA of ITA provides that for the purpose of determining the quantum of the deduction, the profits of the eligible business shall be computed as if such eligible business were the only source of income of the taxpayer. This deeming fiction is applicable from the initial assessment year i.e. the first year of claim of the deduction.

Taxpayers carrying on specified eligible bus

Please become a Premium member. If you are already a Premium member, login here to access the full content.