608. Whether deduction under section 80Q is to be allowed for five years commencing from assessment year 1992-93 provided the other conditions mentioned in section 80Q are satisfied
Section 80Q inserted by the Finance (No. 2) Act, 1991, with effect from 1-4-1992 provides that where in the case of an assessee the gross total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1992 or to any one of the four assessment years next following that assessment year, includes any profits and gains derived from a business carried on in India of printing and publication of books or publication of books, a deduction from such profits and gains of an amount equal to 20 per cent thereof shall be allowed.
(2) The Board has received representations from various publishers and book-sellers’ associations/federations seeking clarifications as to the number of years the deduction under section 80Q would be available.
(3) Explanatory Notes on Finance (No. 2) Act, 1991, 38.2 read as under :—
“… Keeping in view of the vital role of the publishing industry in the development of human resources, a new section 80Q has been inserted in the Income-tax Act to revive the aforesaid tax concession for five years commencing with the assessment year 1992-93.”
(4) It is hereby clarified that deduction under section 80Q of the Income-tax Act is to be allowed for five years commencing from assessment year 1992-93 provided that the other conditions mentioned in the section are satisfied.
Circular : No. 706, dated 26-6-1995, as amended by, Circular No. 746, dated 26-7-1996.