This article attempts to briefs about the deductions U/s 80IA which is coming to end for certain categories of enterprises in respect of certain incomes.
(a) Developing Roads etc. : The eligible enterprise should commence business between 01.04.1995 and 31.03.2017. 100% of profit for any 10 consecutive assessment years in a block of 20 years commencing from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1995 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(b) Developing Ports etc. : The eligible enterprise should commence business between 01.04.1995 and 31.03.2017. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming between 01.04.1995 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(c) Telecommunication Services : The eligible enterprise should commence business between 01.04.1995 and 31.03.2005. 100% of profit for first 5 assessment years and 30% for next five assessment years for any 10 consecutive years in a block of 15 years commencing from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1995 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21. Further, A.Y. 2020-21 is the last year of the block of 15 years after which the deduction will never be available.
(d) Industrial Parks : The industrial park should be notified by the Central Govt. in accordance with the scheme framed between 01.04.1997 and 31.03.2011. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1997 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(e) Special Economic Zones : The SEZs should be notified by the Central Govt. in accordance with the scheme framed between 01.04.1997 and 31.03.2005. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1997 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21. Further, A.Y. 2020-21 is the last year of the block of 15 years after which the deduction will never be available.
(f) Generation or generation and distribution of Power : The business should commence between 01.04.1993 and 31.03.2017. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1993 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(g) Laying a Network : The business should commence between 01.04.1999 and 31.03.2017. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.1999 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(h) Substantial Renovation and Modernisation : The business should commence between 01.04.2004 and 31.03.2017. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the enterprise starts business. Accordingly, for those enterprises who commenced business & started claiming deduction between 01.04.2004 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
(i) Reconstruction or revival of a power generating plant : The company must be notified before 31.12.2005 by the Central Government. Such undertaking begins to generate or transmit or distribute power before 31.03.2011. 100% of profit for any 10 consecutive assessment years in a block of 15 years starting from the previous year in which the company starts business. Accordingly, for those companies who commenced business & started claiming deduction between 01.04.2006 and 01.04.2009, the deduction came to end for them w.e.f. A.Y. 2020-21.
Author Bio
