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.

[Rama Krishana]

Section 80 IB (11A) allows deduction in case of integrated business of handling, storage and transportation of food grains apart from other exemptions. Processing of foodgrains such as rice milling, dal milling and flour milling do not meet the conditions of integrated business or handling storage and transportation of good grains and hence not eligible for exemption under sub section 11A of section 80 IB. However, if you open a new unit dedicated to integrated business of handling, storage and transportation of food grains (not part of milling industry), you can claim deduction for that unit.

AI Summary

Deduction for integrated foodgrain handling, storage and transport excludes processors; standalone logistics units may qualify for deduction. Deduction under Section 80IB(11A) applies only to undertakings engaged in the integrated business of handling, storage and transportation of foodgrains; processing or manufacturing units such as rice, dal and flour mills do not meet these conditions and are ineligible. A separate unit dedicated solely to the integrated business and not part of milling/processing may claim the deduction.