Section 80-IC deduction for eligible undertakings in special category states depends on location, activity, and ten-year limits.

Deduction under Section 80-IC applies to an undertaking or enterprise carrying on an eligible business and earning profits included in gross total income. The provision covers manufacturing or production in specified special category States and notified industrial areas, subject to the relevant commencement dates, exclusions for scheduled articles or things, and the applicable deduction period. The deduction is 100% for ten years in Sikkim and the North-Eastern States, and 100% for five years followed by 25% or 30% in Himachal Pradesh and Uttarakhand, subject to the ten-year cap and the prescribed conditions on formation, used machinery, and overlapping tax benefits.

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