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What are Deduction in respect of profits and gains from business of hotels and convention centres in specified area? Section 80-ID of Income Tax Act 1961

Deduction in respect of profits and gains from business of hotels and convention centres in specified area is defined under section 80-ID of Income Tax Act 1961. Provision under this Section is:

Section 80-ID of Income Tax Act "Deduction in respect of profits and gains from business of hotels and convention centres in specified area"

Section 80-ID. (1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking from any business referred to in sub-section (2) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for five consecutive assessment years beginning from the initial assessment year.

(2) This section applies to any undertaking,-

 

(i) engaged in the business of hotel located in the specified area, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2007 and ending on the 31st day of July, 2010; or

(ii) engaged in the business of building, owning and operating a convention centre, located in the specified area, if such convention centre is constructed at any time during the period beginning on the 1st day of April, 2007 and ending on the 31st day of July, 2010; or

(iii) engaged in the business of hotel located in the specified district having a World Heritage Site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.

(3) The deduction under sub-section (1) shall be available only if-
(i) the eligible business is not formed by the splitting up, or the reconstruction, of a business already in existence;
(ii) the eligible business is not formed by the transfer to a new business of a building previously used as a hotel or a convention centre, as the case may be;
(iii) the eligible business is not formed by the transfer to a new business of machinery or plant previously used for any purpose.
Explanation.-The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section;
(iv) the assessee furnishes along with the return of income, the report of an audit in such form and containing such particulars as may be prescribed99, and duly signed and verified by an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed.
(4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or section 10AA, in relation to the profits and gains of the undertaking.
(5) The provisions contained in sub-section (5) and sub-sections (8) to (11) of section 80-IA shall, so far as may be, apply to the eligible business under this section.
(6) For the purposes of this section,-
(a) "convention centre" means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed1;
(b) "hotel" means a hotel of two-star, three-star or four-star category as classified by the Central Government;
(c) "initial assessment year"-
(i) in the case of a hotel, means the assessment year relevant to the previous year in which the business of the hotel starts functioning;
(ii) in the case of a convention centre, means the assessment year relevant to the previous year in which the convention centre starts operating on a commercial basis;
(d) "specified area" means the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad;
(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the Table below, of the States, specified in the corresponding entry in column (3) of the said Table:

Income Tax Act 1961

What are Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone? Section 80-IAB of Income Tax Act 1961

What are Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings? Section 80-IB of Income Tax Act 1961

What are Special provisions in respect of certain undertakings or enterprises in certain special category States? Section 80-IC of Income Tax Act 1961

What are Deduction in respect of profits and gains from business of hotels and convention centres in specified area? Section 80-ID of Income Tax Act 1961

What are Special provisions in respect of certain undertakings in North-Eastern States? Section 80-IE of Income Tax Act 1961

What are Special provisions in respect of certain undertakings in North-Eastern States? Section 80-IE of Income Tax Act 1961

What are Deduction in respect of royalties, etc., from certain foreign enterprises? Section 80-O of Income Tax Act 1961

What are Deductions to be made in computing total income? Section 80 A of Income Tax Act 1961

What are the Deductions to be made with reference to the income included in the gross total income? What are Deduction not to be allowed unless return furnished? Section 80AB and 80AC of Income Tax Act 1961

What are the Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc? Section 80C of Income Tax Act 1961

What is the Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan? Section 80CCA of Income Tax Act 1961

What is the Deduction in respect of investment made under Equity Linked Savings Scheme? Section 80CCB of Income Tax Act 1961

What is the Deduction in respect of contribution to certain pension funds? Section 80CCC of Income Tax Act 1961

What is Deduction in respect of contribution to pension scheme of Central Government? Section 80CCD of Income Tax Act 1961

What is Limit on deductions under sections 80C, 80CCC and 80CCD Deduction in respect of subscription to long-term infrastructure bonds? Section 80CCE and 80CCF of Income Tax Act 1961

What is Deduction in respect of investment made under an equity savings scheme? Section 80CCG of Income Tax Act 1961

 

Name of District

Name of State
Agra
Jalgaon
Aurangabad
Kancheepuram
Puri
Bharatpur
Chhatarpur
Thanjavur
Bellary
South 24 Parganas
Chamoli
Raisen
Gaya
Bhopal
Panchmahal
Kamrup
Goalpara
Nagaon
North Goa
South Goa
Darjeeling
Nilgiri
 
Uttar Pradesh
Maharashtra
Maharashtra
Tamil Nadu
Orissa
Rajasthan
Madhya Pradesh
Tamil Nadu
Karnataka
West Bengal
Uttarakhand
Madhya Pradesh
Bihar
Madhya Pradesh
Gujarat
Assam
Assam
Assam
Goa
Goa
West Bengal
Tamil Nadu.

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