Section 80-IB Income Tax Deductions for Industrial Undertakings: Manufacturing, Mineral Oil, Housing, and Hospitals Explained
Section 80-IB of the Income Tax Act provides deductions for profits and gains from industrial undertakings, excluding infrastructure development. The deduction is available for manufacturing or producing articles not listed in the Eleventh Schedule. For undertakings in backward states or districts, 100% deduction is allowed for the first 5 years, followed by reduced percentages. Specific conditions include not forming by business splitting or transferring old machinery. Deductions also apply to mineral oil refining, natural gas production, housing projects, and hospitals meeting certain criteria. Housing projects must be completed within 5 years and hospitals must have at least 100 beds.