| RELEVANT PROVISIONS | ||
| Sl. No. | Criteria | Conditions |
| 1. | NATURE OF BUSINESS | (a) Manufacture or produce an eligible articles or thing; or
(b) Undertakes Substantial Expansion to manufacture or produce eligible articles or thing; and (c) Carries on ‘eligible business’ |
| 2. | COMMENCEMENT OF
BUSINESS |
Between – 1 April 2007 To 31 March 2017 |
| 3. | LOCATION OF
UNDERTAKING |
NORTH-EASTERN STATES being the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura. |
| 4. | RESTRICTIONS | (a) Should not be formed by SPLITTING UP, or the RECONSTRUCTION of a business already in existence; or
(b) Not formed by TRANSFER of Plant & Machinery used for any purpose. However, if any ‘second-hand’ Plant & Machinery, used outside India by any person other than the assessee, & imported into India, shall not be regarded as Transfer of Plant & Machinery. Further, where, the total value of the Plant & Machinery, transferred does not exceed 20% of the Total Value of Plant & Machinery used in the Business, the above condition is deemed to be complied with. |
| 5. | SEPARATE ACCOUNTS & AUDIT |
|
| 6. | RELATED PARTY
TRANSACTIONS |
POWER OF AO TO RECOMPUTE PROFITS:
|
| 7. | AMOUNT OF DEDUCTION | 100% of the Profits & Gains DERIVED from such business |
| 8. | PERIOD OF DEDUCTION | 10 Consecutive Assessment Years Commencing with the Assessment Year in which the undertaking begins to Manufacture or Produce Articles or Things, or Completes Substantial Expansion. |
| TAX PLANNING | ||
| 1. | RECOMMENDED
BUSINESS ORGANISATION [STATUS] |
1ST Preference Partnership Firm
No provision for Interest on Capital & Remuneration To Working Partners 2ND Preference Company – considering Capital Requirements. 3RD Preference Sole Proprietorship – Only if Capital Requirements can be met by Proprietor without borrowings from Related Parties. |
INTERPRETATION
“Eligible Articles or Things” include any article or thing, excluding – Tobacco & Manufactured Tobacco Substitutes, Pan Masala, Plastic Carry Bags (Less than 20 Microns), & Certain Goods produced by Petroleum Oil or Gas Refineries.
“Eligible Business” includes – Hotel (Not Below 2 Star Category), Adventure & Leisure Sports including Ropeways, Nursing Homes (Minimum 25 Beds), Old-age Home, Information Technology related Training Center, Manufacturing Information Technology related Hardware, and Vocational Training Institute (Hotel Management, Food Craft, Entrepreneurship Development, Nursing & Para Medical, Civil Aviation & Fashion Design & Industrial Training.
“Substantial Expansion” means investment in the plant & machinery by at least 25% of the book value of plant & machinery (before taking depreciation in any year), as on the 1st Day of the year in which Substantial Expansion takes place.
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8 responses to “DEDUCTION UNDER SECTION 80IE – AN OPPORTUNITY”
WHICH FORM IS REQUIRED TO BE FILED FOR CLAIMING THE DEDUCTION UNDER THE SECTION 80IE
Form 10CCB
At present audit report – online does not have an option for deduction u/s 80IE. Hence, you need to file the same manually before the due date.