SEZ-Co-Developer - exemption

[DINESH MORE]

Is SEZ-Co-Developer eligible for Income Tax exemption

[Mukesh Kumar]

Yes, co-developer in SEZ are eligible for income tax benefit. Explanation to section 80IB states that: "Explanation.—For the purposes of this section, "Developer" and "Special Economic Zone" shall have the same meanings respectively as assigned to them in clauses (g) and (za) of section 2 of the Special Economic Zones Act, 2005". Further section 2(g) of SEZ states that, "(g) “Developer” means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 and includes an Authority and a Co-Developer;"

AI Summary

Co-developers in SEZs qualify for income tax exemptions under Section 80IB, aligning with definitions in SEZ Act, 2005. A query was raised regarding whether a co-developer in a Special Economic Zone (SEZ) is eligible for income tax exemption. The response clarified that co-developers are indeed eligible for such benefits. This is based on the explanation in section 80IB of the Income Tax Act, which aligns with definitions provided in the Special Economic Zones Act, 2005. Specifically, section 2(g) of the SEZ Act includes co-developers within the definition of 'Developer,' thus qualifying them for income tax exemptions.