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

Deduction in respect of royalties, etc., from certain foreign enterprises is defined under section 80-O of Income Tax Act 1961. Provision under this Section is:

Section 80-O of Income Tax Act "Deduction in respect of royalties, etc., from certain foreign enterprises"

Section 80-O. Where the gross total income of an assessee, being an Indian company or a person (other than a company) who is resident in India, includes any income received by the assessee from the Government of a foreign State or foreign enterprise in consideration for the use outside India of any patent, invention, design or registered trade mark and such income is received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, is brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to-

 

 (i) forty per cent for an assessment year beginning on the 1st day of April, 2001;
(ii) thirty per cent for an assessment year beginning on the 1st day of April, 2002;
(iii) twenty per cent for an assessment year beginning on the 1st day of April, 2003;
(iv) ten per cent for an assessment year beginning on the 1st day of April, 2004, of the income so received in, or brought into, India, in computing the total income of the assessee and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year :

Provided that such income is received in India within a period of six months from the end of the previous year, or within such further period as the competent authority may allow in this behalf:

Provided further that no deduction under this section shall be allowed unless the assessee furnishes a certificate, in the prescribed form11, along with the return of income, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.

Explanation.-For the purposes of this section,-
(i) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the law for the time being in force for regulating payments and dealings in foreign exchange;

(ii) "foreign enterprise" means a person who is a non-resident;

(iii) services rendered or agreed to be rendered outside India shall include services rendered from India but shall not include services rendered in India;

(iv) "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.
(2) [--].

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

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