TaxTMI 
TaxTMI 
Deduction in respect of profit and gains from undertakings engaged in Infrastructure Development etc. - (New) Section 138 / (Old) Section 80-IA
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.... Accordingly, Section 138 preserves the benefit that was available under Section 80-IA of the Income Tax Act, 1961. The section contains: • Two eligibility conditions [(a) and (b)] • Two limiting conditions [(i) and (ii)] Every condition must be satisfied. Eligibility Condition • Clause (a): Gross Total Income must include eligible profits • The assessee's Gross Total Income (GTI) must include profits from an eligible infrastructure or industrial business. • Clause (b): Assessee should have been eligible under old Section 80-IA of the Income Tax Act, 1961 • The deduction is not a fresh deduction under the Income Tax Act, 2025. • Th....
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....undertaking engaged in infrastructural development, whereas section 80-IB was applicable to industrial undertaking manufacturing and producing article or thing. Deduction in respect of profit and gains from undertakings engaged in Infrastructure Development etc. A. Eligible Assessee I. Any assessee carrying on the business of: i. developing, or ii. operating and maintaining or iii. developing, operating and maintaining any infrastructure facility. Note: "Infrastructure facility" means • a road including toll road, a bridge or a rail system • a highway Project including housing or other activities being an integral part of the highway project • a water sup....
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.... to 31st March 2011. IV. An assessee which sets up in any part of India, the business of generation or generation and distribution of power. Requirements: • It is not developed by splitting up or reconstruction of a business that has already been in use. • It is not developed by the transfer of machinery or plant that has already been in use. • In case of recostruction of power plant, the Power Plant should have been developed before 30th November 2005 and should have been recognized by the Central Government before 31st December 2005. It should start to generate, transmit or distribute power before 31st March 2011. The deduction under section 80-IA shall be 100% of the profits and gains de....
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....undertaking would be regarded as a new infrastructure facility for the purpose of section 80-IA. However, simply relaying of an existing road would not be classifiable as a new infrastructure facility for this purpose. B. Audit of Accounts i. The deduction shall be allowed to the undertaking only if the accounts of the undertaking for the relevant previous year have been audited by a chartered accountant and the assessee furnishes the audit report in the prescribed form, duly signed and verified by such accountant along with his return of income. [ Section 80-IA(7) ] ii. The report of the audit of the accounts of an assessee, which is required to be furnished u/s 80-IA(7) shall be in Form No. 10CCB. iii. A separ....