Deduction for industrial profits permits a specified percentage reduction in taxable profits subject to eligibility and compliance. A provision allows a deduction from profits and gains of qualifying industrial undertakings, ships and hotel businesses equal to a specified percentage (higher for companies). Eligibility requires new formation, non-use of previously used plant subject to exceptions, commencement within a prescribed start-up period, and employment thresholds for manufacturing. The deduction applies in the initial assessment year and a fixed number of succeeding years; non-corporate claimants must produce an audited report. Transfers between businesses are valued at market value for computing the deduction and tax authorities may adjust profits for connected-party arrangements.
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.
Provisions expressly mentioned in the judgment/order text.
Deduction for industrial profits permits a specified percentage reduction in taxable profits subject to eligibility and compliance.
A provision allows a deduction from profits and gains of qualifying industrial undertakings, ships and hotel businesses equal to a specified percentage (higher for companies). Eligibility requires new formation, non-use of previously used plant subject to exceptions, commencement within a prescribed start-up period, and employment thresholds for manufacturing. The deduction applies in the initial assessment year and a fixed number of succeeding years; non-corporate claimants must produce an audited report. Transfers between businesses are valued at market value for computing the deduction and tax authorities may adjust profits for connected-party arrangements.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
