Section(s) Referred: s. 80-IA(12)(e) ,s. 80-IA(4)(iiia)
Statute: INCOME TAX
Date of Issue: 6/10/1999
In exercise of powers conferred by clause (e) of sub-section (12) of section 80-IA of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the stage of development of such area including the extent of and scope for, urbanisation of such area and other relevant consideration specifies the areas shown in column 3 of the schedule below and falling outside the local limits of the municipality or cantonment board, as the case may be, shown in the corresponding entry in column (2) thereof, for the purposes of the said section, namely
SCHEDULE ——– Sl. Name of the municipality or Details of the area No. cantonment board ——– 1 2 3 ——– 1. Mumbai, Calcutta, Delhi, Areas upto a distance of 15 Hyderabad, Chennai and New kilometres in all directions from Delhi. the municipal limits, or, as the case may be, cantonment limits.
2. Ahmedabad, Bangalore, Kanpur, Areas upto a distance of 12 Lucknow, Nagpur and Pune. kilometres in all directions from the municipal limits, or, as the case may be, cantonment limits.
3. Agra, Allahabad, Amritsar, Bhopal, Areas upto a distance of 10 Cochin, Coimbatore, Dhanbad, kilometres in all directions from Gwalior, Indore, Jabalpur, Jaipur, the municipal limits, or, as the Jamshedpur, Ludhiana, Madurai, case may be, cantonment limits. Patna, Salem, Sholapur, Srinagar, Surat, Tiruchirapally, Trivandrum, Varanasi (Benaras) and Vadodara (Baroda)
4. Any other municipality or Areas up to a distance of 8 cantonment board kilometres in all directions from the municipal limits, or, as the case may be, cantonment limits. ——–
2. It shall be deemed to have come into force on the 1st day of April, 1998.
Clause (iiia) of sub-section 4 of secti
on 80-IA provides fiscal incentives for hotel located in a hilly area or rural area or a place of Pilgrimage, which started functioning at any time during the period from 1st April, 1997 to 31st March, 2001. This clause was inserted by the Finance Act, 1997 w.e.f. 1st April, 1998, which is the date from which the provision came into operation. In order to notify rural areas for the purpose of this section, this notification is being brought with retrospective effect from 1st April, 1998. The retrospective operation of this notification will not adversely effect the interest of assessees.
[F. No. 142/20/99-TPL]