Section 80IBA, 80IC, 80ID and 80IE of Income Tax act, 1961 (A.Y. 2019-20)

Deductions from gross total income u/s 80 related to company assessee

Section 80G, 80GGA and 80GGB of Income Tax act, 1961 (A.Y. 2019-20)

Section 80IA, 80IAB, 80IAC and 80IB of Income Tax act,1961 (A.Y. 2019-20)

1. Section 80IBA (Profits from developing and building approved housing projects)

Eligible assessee: All assessees (Corporate and Non-Corporate)

Deduction limit: 100% of the profit derived from such business.

2. Section 80IC (Deduction for setting up undertakings in special States)

This deduction is allowed from profits of certain undertakings or enterprises located in certain special category states. These states are Sikkim, Himachal Pradesh, Uttaranchal and North Eastern States.

Rate and period of deduction u/s 80IC:-

Period of commencement	State	Rate	Period of deduction
From 23-12-2002 To 31-03-2007	Sikkim	100%	For first 10 Assessment years
From 07-01-2003 To 31-03-2012	Himachal Pradesh and Uttaranchal	100% 30%	For first 5 Assessment years For next 5 Assessment years
From 24-12-1997 To 31-03-2007	North Eastern States	100%	First 10 Assessment years

3. Section 80ID (Profits and Gains from hotel / convention centres in specified areas)

Eligible assessee: All assessees (Corporate and Non-Corporate)

Rate and period of deduction: 100% of the profit for 5 consecutive years, beginning from the year of operation

The objective of this deduction is:-

• To provide adequate number of hotels, to fulfill the accommodation requirement of the tourists for the commonwealth games to be held in India.
• To increase the number of convention centres in Delhi and its surrounding specified areas.

Eligible undertakings to claim deduction u/s 80 ID :-

1. Undertaking engaged in the business of hotels in the Specified Area.
2. Undertaking engaged in the business of owning and operating a convention centre in the Specified Area.
3. Undertaking engaged in the business of hotels located in the specified district having a World Heritage Site.

Specified Area: It includes National Capital territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad.

4. Section 80IE (Profits and Gains of certain undertakings in North Eastern States)

Eligible assessee: All assessees (Corporate and Non-Corporate)

Rate and period of deduction: 100% of the profits and gains derived from such business, for 10 consecutive assessment years, beginning with the initial assessment year.

The objective of this deduction is to promote socio-economic development of North Eastern states. Eligible undertakings must be located in a North Eastern States; Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

Eligible undertakings to claim deduction under section 80 IE :-

1. Undertaking manufacturing or producing specified goods or services.
2. Undertaking which undertakes Substantial Expansion to manufacture or produce specified goods or services.

Substantial Expansion: It means increase in the investment in plant and machinery by at least 25% of the book value of plant and machinery without considering depreciation, as on the first day of the previous year in which the substantial expansion is undertaken.

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