Tax deduction for industrial undertakings in special category states requires substantial expansion, audit compliance, and claiming in return. Deduction under Section 80-IC applies to profits of industrial undertakings that begin manufacturing or undertake substantial expansion in specified special category states, where 'substantial expansion' means increasing investment in plant and machinery by at least fifty percent of book value as on the first day of the previous year of expansion. The deduction is linked to the initial assessment year and is available in a higher rate for an initial block of years followed by a lower rate for a subsequent block, with a larger follow-on rate for companies. Mandatory audit by a Chartered Accountant and claiming the deduction in the return of income are required.
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Provisions expressly mentioned in the judgment/order text.
Tax deduction for industrial undertakings in special category states requires substantial expansion, audit compliance, and claiming in return.
Deduction under Section 80-IC applies to profits of industrial undertakings that begin manufacturing or undertake substantial expansion in specified special category states, where "substantial expansion" means increasing investment in plant and machinery by at least fifty percent of book value as on the first day of the previous year of expansion. The deduction is linked to the initial assessment year and is available in a higher rate for an initial block of years followed by a lower rate for a subsequent block, with a larger follow-on rate for companies. Mandatory audit by a Chartered Accountant and claiming the deduction in the return of income are required.
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