Benefit under income tax

[Guest]

We have a unit in excise free zone. Can we claim benefit under income tax for this unit with respect to computation of income of the company as a whole?

[Surender Gupta]

The benefit of exemption from income tax and exemption from excise duty are two independent issues and should not be co-related. You have to examine the exemption in the relevant context only. Income from the unit as computed in accordance witht the relevant provision may be claimed as deduction / exemption.

[Guest]

i think u can take the benifit u/s 80-I-C(2)(A)(II)

AI Summary

Tax exemption independence: excise-free zone units may claim income-tax deductions under applicable statutory provisions. Exemption from income tax is distinct from excise exemption; income from an excise free zone unit must be assessed under the relevant income tax provisions and any deduction or exemption can be claimed only by satisfying the statutory eligibility criteria and procedural requirements of those provisions.