TaxTMI 
TaxTMI 
Deduction in respect of specified Business - (New) section 140 / (Old) Section 80IAC
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....ss qualify. Income merely attributable to the business but not directly derived from it may not qualify. "Eligible Business" means a business carried out by an eligible start-up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation; "Eligible start-up" means a company or a limited liability partnership engaged in eligible business which fulfils the following conditions:- • (i) it is incorporated on or after the 1st April, 2016 but before the 1st April, 2030; • (ii) the total turnover of its business does not exceed three hundred crore rupees in the tax year relevant to the ....
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.... • same assessee must revive the business. (b) Old machinery cannot ordinarily be shifted into a new undertaking merely to obtain tax deduction. Exception - Previously used machinery imported into India shall be treated as new machinery if certain conditions are satisfied. subject to condition, The machinery: • (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; • (b) such machinery or plant is imported into India; and • (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act Restriction on use of Old Ma....
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....h goods or services as on that date. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. "Market Value", in relation to any goods or services, means - (i) General transactions - the price that such goods or services would ordinarily fetch in the open market; or (ii) Specified domestic transaction - the arm's length price as defined in section 173(a), where the transfer of such goods or services is a specified domestic transaction referred to in section 164. No Double ....
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....¢ A separate report shall be furnished by each undertaking or enterprise of the assessee claiming deduction under section 142 and shall be accompanied by the profit and loss account and balance sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. • The said Form No. 32 (Part B4) shall be accompanied by the • Copy of certificate issued by the Inter-Ministerial Board of Certification. Under Section 80IAC of the Income Tax Act, 1961 [ Upto 31.03.2026 ] To initiate the development of startups in India and provide a competitive platform, Section 80-IAC states that an eligible startup shall be allowed a deduction of an amount equ....
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.... Rs. 25 crore in PY relevant to AY (Rs. 100 crore from the A.Y. 2021-22) in which deduction u/s 80-IAC is claimed. • It holds a eligible certificate of business from Inter-Ministerial Board of Certification as notified in the Official Gazette by the CG. • it is not formed by splitting up, or the reconstruction, of a business already in existence. • Exception:- this condition shall not apply in respect of a start-up which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as referred to in section 33B, in the circumstances and within the period specified in that section. • it is not formed by the transfe....