Cottage industry classification clarified under income-tax rules: use of power, workforce size, and ownership guide eligibility determinations. Clarification directs that for section 80P(2)(a)(ii) an industry not required to be registered under the Factory Act may be treated as a cottage industry; the use of power and number of workers are limited tests and ownership by the worker or a cooperative group is an additional criterion. Authorities should apply these broad guidelines flexibly in each case when assessing eligibility.
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Cottage industry classification clarified under income-tax rules: use of power, workforce size, and ownership guide eligibility determinations.
Clarification directs that for section 80P(2)(a)(ii) an industry not required to be registered under the Factory Act may be treated as a cottage industry; the use of power and number of workers are limited tests and ownership by the worker or a cooperative group is an additional criterion. Authorities should apply these broad guidelines flexibly in each case when assessing eligibility.
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