Under the existing provisions of section 80-IA(4)(iv) of the Income-tax Act, a deduction of profits and gains is allowed to an undertaking which,
(a) is set up for the generation and distribution of power if it begins to generate power at any time during the period beginning on 1st April, 1993 and ending on 31st March, 2011;
(b) starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on 15t April, 1999 and ending on 31st March, 2011;
(c) undertakes substantial renovation and modernisation of existing network of transmission or distribution lines at any time during the period beginning on 15t April, 2004 and ending on 31st March, 2011.
It is proposed to amend section 80-IA(4)(iv) to extend the terminal date for a further period of one year, i.e., upto 31st March, 2012.
This amendment will take effect from 15t April, 2012 and will, accordingly, apply in relation to assessment year 2012-13 and subsequent years.
