Deduction for convertible foreign exchange: tax relief for profits from services to foreign tourists with reserve use conditions. Section 80HHD grants a deduction to resident Indian hotels, approved tour operators and travel agents for profits from services to foreign tourists where receipts are in convertible foreign exchange. The deduction comprises an immediate deducted portion of profits and an amount transferable to a reserve account. Profits are apportioned where businesses are mixed, reserve amounts must be utilised within five years for prescribed tourism capital or facility purposes (with approval for assets outside India), and misuse or non utilisation results in those amounts being taxed as profits. A prescribed accountant's certificate must accompany the return.
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 convertible foreign exchange: tax relief for profits from services to foreign tourists with reserve use conditions.
Section 80HHD grants a deduction to resident Indian hotels, approved tour operators and travel agents for profits from services to foreign tourists where receipts are in convertible foreign exchange. The deduction comprises an immediate deducted portion of profits and an amount transferable to a reserve account. Profits are apportioned where businesses are mixed, reserve amounts must be utilised within five years for prescribed tourism capital or facility purposes (with approval for assets outside India), and misuse or non utilisation results in those amounts being taxed as profits. A prescribed accountant's certificate must accompany the return.
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