RBI/ECGC bonds issued to project exporters who have executed projects in Iraq--Applicability of the condition regarding bringing of convertible foreign exchange into India for availing of the tax incentive under section 80HHB

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....ging of convertible foreign exchange into India for availing of the tax incentive under section 80HHB. Circular No. 711 Dated 24/7/1995 Section 80HHB of the Income-tax Act provides for a deduction of 50 per cent. of profits derived from projects abroad, in the computation of taxable income. The incentive is subject to the condition that 50 per cent. of profits derived from such projects be brou....

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....ement entered into by the Government of India and the Government of Iraq. 4. The Central Board of Direct Taxes have examined the matter in consultation with the Department of Economic Affairs. Since the payments received in the shape of bonds are in lieu of foreign exchange realisation from the project exports and the foreign exchange will eventually be repatriated into India by the EXIM Bank aft....