Amendments proposed for deductions in IT Act for Special Economic Zone units
Ranjeet Mahtani and Stella Joseph One of the noteworthy proposals made in the Union Budget of 2017 is the proposal to rationalize Section 10AA of the Income-tax Act, 1961 (“IT Act”), which contains special provisions in respect of newly established Units in Special Economic Zones (“SEZ”). The IT Act provides for the levy, collection and recovery of income tax in India. It is divided into various chapters governing separate aspects including exemptions, computation of total income, deductions, etc. Section 10AA of the IT Act is a provision contained in Chapter III of the IT Act which was inserted w.e.f. 10.02.2006 allowing for deduction of profits and gains derived from the export earned by an SEZ Unit. The Section specifically uses the word “deduction”. ...
Govt relaxes income tax rule to attract single institutional entities
Many institutional entities had long demanded for a change in the existing Income Tax framework so as to relax the harsh condition imposed on the tax payers The Dollar Business Bureau Single institutional entities will be eligible for income tax exemption, if the investors meet the minimum criteria of employing at least 25 members The government has tweaked the existing income tax framework with an aim to extend the exemption of taxes to single institutional entities. The liberalised framework will come into effect on April 1 this year and is envisaged to escalate offshore fund management activities in the domestic market. "The CBDT has issued operating rules governing Section 9A of the I-T Act, which provides for special taxation regime with effect from April ...
