Tax deduction for export profits extended to new SEZ manufacturers and preserved on reorganisation subject to majority shareholding.

Amendments to section 10A fix a specific deduction rate for the assessment year beginning 1 April 2003 and introduce an enhanced deduction for undertakings that commence manufacture or production in a special economic zone, providing full exemption of export-derived profits for an initial consecutive period and a reduced exemption for a subsequent limited period. The amendments further allow transfer of the deduction to a successor company on reorganisation where the partners or sole proprietor retain a majority of total voting power and maintain that shareholding for the eligibility period.

---

---

---