Deduction for new industrial, ship and hotel profits tied to capital employed, with detailed computation, eligibility, and carry forward rules. Section 80J permits a deduction from profits of newly established industrial undertakings, ships and hotel businesses equal to a specified rate of the ... Summary
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Deduction for new industrial, ship and hotel profits tied to capital employed, with detailed computation, eligibility, and carry forward rules.
Section 80J permits a deduction from profits of newly established industrial undertakings, ships and hotel businesses equal to a specified rate of the capital employed, allowed for the initial assessment year and a limited number of succeeding assessment years. The section prescribes detailed computation of capital employed (asset values, deduction of borrowed moneys, adjustments for non-business investments), eligibility conditions for undertakings, ships and hotels, carry-forward and set-off of deficiencies for limited years, audit requirements for non-corporate claimants, market-value adjustments for transfers between businesses, and assessing officer and Central Government powers to limit or exclude the exemption.
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