Exemption limit for units in SEZ

[velayutham panchatcharam]

How many years income tax exemption for units located in SEZ?

[Ravi Chopra]

100% exemption for initial 5 years and 50% for further 5 years - refer to provisions of Section 10AA of Income Tax Act, 1961.

AI Summary

SEZ tax exemption: Initial full exemption followed by partial exemption under Section 10AA for units in special economic zones. Phased income tax relief for Special Economic Zone units is governed by Section 10AA, providing an initial full exemption followed by a subsequent reduced exemption period for units that satisfy the statutory eligibility conditions and time based relief structure.