TaxTMI 
TaxTMI 
Deduction in respect of profits and gains from projects outside India
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.... the Government of a foreign State or any statutory or other public authority or agency in a foreign State, or a foreign enterprise, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, 2[a deduction from such profits and gains of an amount equal to- (i) forty per cent thereof for an assessment year beginning on the 1st day of April, 2001; (ii) thirty per cent thereof for an assessment year beginning on the 1st day of April, 2002; (iii) twenty per cent thereof for an assessment year beginning on the 1st day of April, 2003; (iv) ten per cent thereof for an assessment year beginning on the 1st day of April, 2004, and no deduction shall be allowed in ....
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....f such audit in the prescribed form duly signed and verified by such accountant ; 3[(ia) the assessee furnishes, along with his return of income, a certificate in the prescribed form from an accountant as defined in the Explanation below sub-section (2) of section 288, duly signed and verified by such accountant, certifying that the deduction has been correctly claimed in accordance with the provisions of this section ;] (ii) an amount equal to 4[such percentage of the profits and gains as is referred to in sub-section (1) in relation to the relevant assessment year] is debited to the profit and loss account of the previous year in respect of which the deduction under this section is to be allowed and credited to a reserve account ....
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....ime being in force for regulating payments and dealings in foreign exchange.] (4) If at any time before the expiry of five years from the end of the previous year in which the deduction under sub-section (1) is allowed, the assessee utilises the amount credited to the Foreign Projects Reserve Account for distribution by way of dividends or profits or for any other purpose which is not a purpose of the business of the assessee, the deduction originally allowed under sub-section (1) shall be deemed to have been wrongly allowed, and the 9[Assessing] Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of secti....
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...., 2000 w.e.f. 01-04-2001 before it was read as, "fifty per cent of the profits and gains referred to in sub-section (1)" Earlier, Amended vide Section 4 of the Income-tax (Amendment) Act, 1986 w.e.f. 01-04-1987 6. Substituted vide Section 45 of the Finance Act, 1999 w.e.f. 01-06-1999 before it was read as, "where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, within such further period as the Chief Commissioner or Commissioner may allow in this behalf :" Earlier, Amended vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 7. S....