Section 10BB of Income Tax Act: Meaning of Computer Programmes in Certain Cases
Section 10BB was a special interpretative provision connected with the earlier version of Section 10B. It expanded the expression "computer programmes" for that historical provision so that it also covered processing or management of electronic data.
Meaning and purpose of Section 10BB
Section 10BB addressed the meaning of "computer programmes" for profits and gains derived by an undertaking under Section 10B as that section stood before its substitution by Section 7 of the Finance Act, 2000.
In practical terms, the provision required the old Section 10B to be read as though the expression "computer programmes" also included "processing or management of electronic data." It was therefore an interpretative deeming provision for the specified historical version of Section 10B, rather than a separate general deduction or exemption for all computer-related income.
Text of Section 10BB
Section 10BB - Meaning of computer programmes in certain cases
The profits and gains derived by an undertaking from the production of computer programmes under section 10B, as it stood prior to its substitution by section 7 of the Finance Act, 2000 (10 of 2000), shall be construed as if for the words "computer programmes", the words "computer programmes or processing or management of electronic data" had been substituted in that section.
Source: Income Tax Department, Government of India. Always verify the text applicable to the relevant assessment year.
Legal effect and connection with Section 10B
| Provision | Section 10BB of the Income-tax Act, 1961. |
|---|---|
| Subject | Meaning of "computer programmes" in certain cases. |
| Linked provision | Section 10B as it stood before substitution by Section 7 of the Finance Act, 2000. |
| Interpretative effect | The old reference to "computer programmes" was to be read as including "computer programmes or processing or management of electronic data." |
| Nature | A deeming and clarificatory rule tied to the historical Section 10B regime. |
The words "shall be construed as if" create the statutory reading required by Section 10BB. The provision does not operate independently of the old Section 10B; its function is to tell the reader how that earlier provision is to be understood for the cases to which Section 10BB applies.
Retrospective application from 1 April 1994
The Income Tax Department's official text records that Section 10BB was inserted by the Finance Act, 2001 with retrospective effect from 1 April 1994. This historical effective date is significant because the provision was designed to govern the interpretation of the earlier Section 10B for the relevant period.
Current relevance of Section 10BB
The official Income Tax Department navigator mapping provisions of the Income-tax Act, 1961 to the newer income-tax legislation marks Section 10BB as "Redundant." Accordingly, Section 10BB is principally useful today for historical interpretation, legacy assessments, appeals, litigation and research involving the earlier Section 10B regime.
For current compliance, use the legislation, rules, forms and official portal guidance applicable to the relevant tax year. The historical wording on this page should not be treated as creating a new or continuing standalone tax benefit.
Section 10BB is different from Form 10BB
Section 10BB and Form 10BB are not the same. Section 10BB discussed on this page is the historical statutory provision concerning the meaning of computer programmes in certain cases. Form 10BB is an audit-report form used for specified funds, trusts and institutions under separate provisions and rules. The similarity in numbering should not be used to connect the two.
Related provisions
For context, also see Section 10 - incomes not included in total income, Section 10A, Section 10AA, Section 10B, Section 10BA and Section 10C.