Deduction for earnings and gains from some industrial projects, excluding those for infrastructure development

When an assessee's gross overall revenue includes profits and gains from any business, the assessee shall be permitted, in accordance with it and subject to the requirements of this section, to deduct from such profits and gains an amount equal to the percentage and for the number of years of assessment specified in this section when computing the assessee's total income. Get registration of 80g done for your NGO.

Details can be found at 12a.

Any industrial venture that meets all of the requirements listed below is covered by this section:-

(a) It is not created by the dissolution or rebuilding of an existing company. This condition does not apply to an industrial enterprise that is created as a result of the assessee re-establishing, rebuilding, or revitalising the operations of any industrial undertaking mentioned in Section 33B, within the conditions and within the timeframe stated in that Section.

(b) It is not created by the transfer of equipment or a facility already utilised for any purpose to a new firm.

(c) It maintains one or more cold storage facilities in any region of India and manufactures or produces any goods, as long as they are not among those listed in the Eleventh Schedule.

(d) When an industrial endeavour produces or manufactures goods, it either employs ten or more employees in a manufacturing process that uses power or twenty or more workers in a manufacturing method that does not use power.

In the event of an industrial undertaking, the amount of deduction is 25% of the profits and gains generated by such industrial enterprise for a period of 10 consecutive assessment years commencing with the initial assessment year, provided that the necessary requirements are met, namely:-

(a) Any time between the first day of April 1991 and the last day of March 1995, it starts to produce or manufacture goods, or run the relevant plant or factories.

(b) When a small-scale industrial enterprise starts making or producing goods or running its cold storage facility at any point between the first of April 1995 and the last day of March 2002, that is when it becomes an industrial undertaking.

For the first five assessment years starting with the first assessment year, a deduction of 100% of the profits and gains from the industrial undertaking in the industrially backward State stipulated in the Eighth Schedule will be made, and then a deduction of 25% of the profits and gains from the industrial undertaking will be made.

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