Deduction for foreign project profits requires audit, reserve creation, and timely foreign exchange remittance to qualify. Deduction for profits from specified foreign projects is allowed where consideration is in convertible foreign exchange; claimant must maintain separate ... Summary
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Deduction for foreign project profits requires audit, reserve creation, and timely foreign exchange remittance to qualify.
Deduction for profits from specified foreign projects is allowed where consideration is in convertible foreign exchange; claimant must maintain separate audited accounts, furnish a prescribed accountant's certificate, debit the prescribed percentage to a Foreign Projects Reserve Account, and remit the corresponding amount in convertible foreign exchange into India within six months (or any competent authority-allowed extension). The reserve must be used for business purposes (not distribution) for five years, failing which the deduction is treated as wrongly allowed and the Assessing Officer may recompute income.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.