Prescribed area, minimum seating capacity, facilities and amenities for convention centres; minimum number of convention halls in the convention centres; and particulars of audit report, for deduction under section 80-ID. "

The Finance Act, 2007 inserted a new section 80-ID in the Income-tax Act, 1961 to provide for a 100% deduction of the profits and gains derived by an undertaking from the business of operating a hotel or from the business of building, owning and operating a convention centre subject to the conditions prescribed therein.

Clause (iv) of sub-section (3) of section 80-ID of the said Act lays down that the assessee shall furnish a report of audit in the prescribed form, and duly signed by an accountant, certifying that the deduction has been correctly claimed, Clause (a) of sub-section (6) of section 80-ID of the said Act defines a 'convention centre' as a building of prescribed area and having such other facilities as may be prescribed.

Accordingly, a new rule 18DE and a new form 10CCBBA have been inserted in the Income-tax Rules for this purpose.

Deduction under section 80-ID requires prescribed convention centre standards and an accountant's audit report in prescribed form. A new tax incentive grants a 100% deduction for profits from hotels or building, owning and operating convention centres, contingent on meeting prescribed physical and operational standards (area, seating capacity, facilities, minimum halls). Claimants must submit a prescribed audit report signed by an accountant certifying the correctness of the deduction. Implementing rules and a prescribed auditor's form have been inserted to give effect to these requirements.