deduction U/S 80 IB

[Sanjeev Agrawal]

Vide sub section 11A deduction is available to an undertaking deriving proit from the integrated business of handling,storage and transportation of foodgrains. WILL it cover manufacturers or processors of foodgrains such as rice mills, dal mills, flour mills etc. as they apart from manufacturting turing/processing, also do handling ,storage and transportation of food grains.

AI Summary

Manufacturers and processors of foodgrains not eligible for Section 80 IB (11A) deductions unless new units handle logistics. A query was raised regarding whether manufacturers or processors of foodgrains, like rice mills, dal mills, and flour mills, qualify for deductions under Section 80 IB (11A) of the Income Tax Act, which pertains to integrated business activities of handling, storage, and transportation of foodgrains. The response clarified that these milling activities do not qualify for the deduction as they do not meet the criteria for integrated business activities. However, if a new unit is established specifically for handling, storage, and transportation of foodgrains, it may be eligible for the deduction.