Section 10A

Sunset date for claiming Income Tax exemption for SEZs – Extension Needed

Income Tax - Sunset date for claiming Income Tax exemption for SEZs – Time to further extend the sunset date mentioned under Section 10AA of the Income Tax Act, 1961 considering difficulties faced by SEZ Units to commence the production due to restriction placed for controlling pandemic Covid-19. Article explains Sunset date for claiming Income ...

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For section 10A, total turnover is sum of export & domestic turnover

Income Tax - Section 10A of the Income Tax Act, 1961 (the Act for short) deals with special provision in respect of newly established undertakings in free trade zone, etc. For the purposes of section 10A, total turnover is sum of export turnover as well as domestic turnover...

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Exemption Under Special Provisions – Sections 10A/10AA/10B

Income Tax - Article discusses Exemption Under Special Provisions of Sections 10A, Section 10AA and Section 10B of Income Tax Act, 1961. A. Section 10A- Special provision in respect of newly established undertakings in free trade zone, etc. The benefit in respect of newly established Industrial Undertaking in FTZ, EHTP SEZ or STP is Available to all A...

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Benefits To SEZ Entities Under The Income Tax Law

Income Tax - An entrepreneur, who begins to manufacture or produce articles or things or provide any services during the period beginning from 1st April, 2005 to 31st March, 2020, shall be eligible to take a deduction under section 10AA with respect to the export turnover of his unit located in SEZ....

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File Tax Return for exempt Income if exceeds basic exemption limit

Income Tax - Existing provisions of sub-section (1) of section 139 provide that every person referred to therein shall file a return of income on or before the due date. The sixth proviso to the said section provides that every person, being an individual or Hindu undivided family or an association of person or a body of individual...

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Role of IT Sector is Crucial to Promote E-Governance – FM

Income Tax - FM: Role of IT Sector is Crucial in Order to Promote E-Governance for Empowering Citizens; to Promote the Inclusive and Sustainable Growth of the Electronics, IT and ITeS Industries and Enhancing India’s Role in Internet Governance...

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Infosys plans to appeal against arbitrary order, Industry Surprised by order

Income Tax - Infosys Technologies Ltd. Tuesday said it will appeal against an order from the income tax department seeking more than 4 billion rupees ($88.8 million) in taxes for software sales made at the overseas premises of its international clients. The Econo...

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Incidental Interest Income eligible For section 10A Deduction

PCIT Vs NTT Data Global Delivery Services Ltd (Delhi High Court) - Whether ITAT erred in law in deleting addition as Income from Other Sources and holding it eligible for calculation of deduction under Sections 10A and 10B of Income Tax Act, 1961?...

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Section 10A deduction cannot be denied for Hardware used in Export of Software

Subex Limited Vs DCIT (Karnataka High Court) - Subex Limited Vs DCIT (Karnataka High Court) we are of the considered view that the Assessing Officer framed an incorrect question for his consideration that whether sale of Hardware which is not manufactured by the assessee could be considered as part of export. The CIT(A) also committed the same e...

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Maintaining of separate books not required for claiming deduction u/s 10A/ 10AA

IBM India Private Limited Vs Asst.CIT (ITAT Bangalore) - Held that there is no requirement for maintaining separate books of account for claiming deduction under section 10A/10AA of the Act, and books of account maintained by assessee is sufficient to enable computation of profits of various SEZ units....

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Section 10A exemption cannot be denied for mere non-filing of Form No. 56F

DCIT Vs Clarion Technologies Pvt. Ltd (ITAT Pune) - DCIT Vs Clarion Technologies Pvt. Ltd (ITAT Pune) ITAT held that stand of the Revenue that assessee cannot be allowed the benefits of section 10A of the Act merely because the prescribed Audit Report in Form No.56F was not filed in the return of income, is quite erroneous. ITAT note that the AO pass...

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AO cannot withdraw Section 10B relief allowed in earlier year in subsequent assessment year

Gangagen Biotechnologies Pvt. Ltd. Vs PCIT (ITAT Bangalore) - Gangagen Biotechnologies Pvt. Ltd. Vs PCIT (ITAT Bangalore) Bombay High Court in the case of CIT vs. Western Outdoor Interactive Pvt. Ltd. (349 ITR 309) has held that whether a benefit of deduction is available for a particular number of years on satisfaction of certain conditions and under the prov...

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Computation of deduction u/s 10A of Income Tax Act, 1961

Circular No. 4/2018-Income Tax - (14/08/2018) - As per section 10A(4) of Income Tax Act, 1961, profits derived from export of articles or things or computer software shall be amount which bears to the profits of the business of the undertaking , the same proportion as the export turnover in respect of such articles or things or computer software ...

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Sec 10AA – Employee Transfer limit (From STPI/Other Units to SEZ) increased to 50%

Circular No. 14/2014-Income Tax - (08/10/2014) - Circular No. 14/2014-Income Tax CBDT had issued Circular No.12/2014 dated 18th July, 2014 to clarify that mere transfer or re-deployment of existing technical manpower from an existing unit to a new SEZ unit in the first year of commencement of business will not be construed as splitting up or reco...

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Deduction U/s. 10A/10AA on transfer of Technical Man-power in case of software industry -Reg.

Circular No. 12/2014-Income Tax - (18/07/2014) - Circular No. 12/2014-Income Tax Section 10AA of the Income-tax Act, 1961, inter-alia, provides for deduction in respect of the profits derived by a unit set up in SEZ from export of computer software or from providing any ITES services. The said deduction available to a new SEZ unit is subject to c...

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CBDT clarification on export of computer software in relation to Sec 10A, 10AA, 10B

CBDT Instruction No 3/2014 - (14/03/2014) - A clarificatory Circular No. 01/2013 dated 17.01.2013 was issued by CBDT to address various contentious issues leading to tax disputes in cases of entities engaged in export of computer software which are availing tax-benefits under sections 10A, 10AA and 10B of the Income-tax Act, 1961....

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AO to follow clarification on export of computer software Direct tax benefits -CBDT

INSTRUCTION NO. 17/2013 - (19/11/2013) - A clarificatory Circular No. 01/2013, dated 17-1-2013 (hereinafter referred to as 'Circular') was issued by CBDT to address various contentious issues leading to tax disputes in cases of entities engaged in export of computer software which are availing tax-benefits under sections 10A, 10AA and 10B ...

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Recent Posts in "Section 10A"

Incidental Interest Income eligible For section 10A Deduction

PCIT Vs NTT Data Global Delivery Services Ltd (Delhi High Court)

Whether ITAT erred in law in deleting addition as Income from Other Sources and holding it eligible for calculation of deduction under Sections 10A and 10B of Income Tax Act, 1961?...

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Section 10A deduction cannot be denied for Hardware used in Export of Software

Subex Limited Vs DCIT (Karnataka High Court)

Subex Limited Vs DCIT (Karnataka High Court) we are of the considered view that the Assessing Officer framed an incorrect question for his consideration that whether sale of Hardware which is not manufactured by the assessee could be considered as part of export. The CIT(A) also committed the same error. We say so because: firstly, [&hell...

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Maintaining of separate books not required for claiming deduction u/s 10A/ 10AA

IBM India Private Limited Vs Asst.CIT (ITAT Bangalore)

Held that there is no requirement for maintaining separate books of account for claiming deduction under section 10A/10AA of the Act, and books of account maintained by assessee is sufficient to enable computation of profits of various SEZ units....

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Section 10A exemption cannot be denied for mere non-filing of Form No. 56F

DCIT Vs Clarion Technologies Pvt. Ltd (ITAT Pune)

DCIT Vs Clarion Technologies Pvt. Ltd (ITAT Pune) ITAT held that stand of the Revenue that assessee cannot be allowed the benefits of section 10A of the Act merely because the prescribed Audit Report in Form No.56F was not filed in the return of income, is quite erroneous. ITAT note that the AO passed order […]...

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AO cannot withdraw Section 10B relief allowed in earlier year in subsequent assessment year

Gangagen Biotechnologies Pvt. Ltd. Vs PCIT (ITAT Bangalore)

Gangagen Biotechnologies Pvt. Ltd. Vs PCIT (ITAT Bangalore) Bombay High Court in the case of CIT vs. Western Outdoor Interactive Pvt. Ltd. (349 ITR 309) has held that whether a benefit of deduction is available for a particular number of years on satisfaction of certain conditions and under the provision of Act, then without withdrawing [...

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Income from amount kept in EEFC account eligible for Section 10A deduction

Tech Mahindra Business Services Limited Vs DCIT (ITAT Mumbai)

Tech Mahindra Business Services Limited Vs DCIT (ITAT Mumbai) During the course of assessment proceedings, the assessee was asked to furnish the break-up of foreign exchange gain credited in the profit and loss account amounting to Rs.13,31,38,000/- for which deduction u/s.10A of the Act was claimed by the assessee. The assessee was also ...

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Scrap sales not forms part of total turnover: HC

CIT Vs Tweezerman (India) Pvt. Ltd. (Madras High Court)

CIT Vs Tweezerman (India) Pvt. Ltd. (Madras High Court) The short question involved in the instant case is as how to compute the total turnover while considering the claim for exemption under Section 10B of the Act. The assessee is engaged in the manufacture of certain articles which are being exported and during the manufacturing [&helli...

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Section 10A deduction allowable on interest income & foreign exchange gain

Tech Mahindra Business Services Ltd Vs DCIT (ITAT Mumbai)

Tech Mahindra Business Services Ltd Vs DCIT (ITAT Mumbai) Undisputedly, the assessee has earned the interest income from the deposit made towards bank guarantee and temporary parking of surplus funds. It is evident, the assessee has no other activity of earning income except export of ITES through its 10A unit. Thus, it can be safely [&he...

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Alternative claim of section 10A exemption allowed on export of software & IT-enabled service

CIT Vs TNQ Books and Journals Private Limited (Madras High Court)

Assessee was entitled to alternative claim of exemption on export of software and IT enabled service under section 10A by following the decision in case of 2020 (113) taxmann.com 74 (SC) [Commissioner of Income-Tax III v. Mphasis Ltd.]...

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Not mandatory to maintain separate books of accounts for claiming section 10A deduction

Virtusa Consulting Services Pvt. Ltd. Vs DCIT (Madras High Court)

AO did conduct an enquiry, called for details, the details were produced and thereafter, the assessment was completed. Therefore, the finding of the PCIT was erroneous, consequently, assumption of jurisdiction under Section 263 was not sustainable. Also, there was no requirement in law to maintain separate books of account for claiming de...

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