SEZ - Exemption u/s 10A / 10B upto 10 years

[Sunil K. Jain]

Finance act no 2 of 2009 has extended the exemption u/s 10 A/10B upto 31.3.2011. What does it mean for the units who have started there manufacturing in SEZ earlier and have already claimed exemtion for 10 consecutive years upto A.Y. 2010-11. Can the unit claim exemption for further year? Is this a loophole in the law ?

AI Summary

Tax Exemption Extension for SEZ Units Under Sections 10A & 10B Clarified: No Benefit Beyond 10-Year Limit A discussion on a forum addressed the extension of the tax exemption under sections 10A and 10B of the Income Tax Act, as per the Finance Act No. 2 of 2009, until March 31, 2011. The query questioned whether units in Special Economic Zones (SEZs) that have already claimed the exemption for 10 consecutive years could benefit further. Responses clarified that the extension applies only to units unable to utilize the full entitlement period, and the 10-year limit remains unchanged. The extension is not a loophole and does not affect units that have completed their 10-year exemption period by the assessment year 2010-11.