Section 80HHC Deduction Now Includes Export of Processed Granite Blocks, Effective April 1, 1991.
The circular clarifies that the deduction under section 80HHC of the Income-tax Act, 1961, is applicable to the export of "cut and polished minerals and rocks," including granites, effective from April 1, 1991. Initially, dimensional blocks of granite were ineligible for this benefit. However, following representations from industry associations, the Board reconsidered and determined that the mechanical processing of rough granite into dimensional blocks involves substantial value addition. Consequently, profits from exporting these processed granite blocks are now eligible for the deduction under section 80HHC.
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