Category: Income Tax Forms

FORM 58C for Report to Be Submitted1961 to the National Committee by an Approved Association or Institution. FORM 58C is relevant to an association or institution approved by the National committee which has received donation as envisaged in section 35AC of the act for carrying out any notified eligible project or scheme.

(1) The report to be furnished by the approved association or institution under clause (ii) of sub-section (4) of section 35AC shall be in Form No. 58C.

(2) The report referred to in sub-rule (1) shall be furnished to the National Committee before the expiry of three months from the end of the financial year.

(3) The National Committee, after receipt of the report referred to in sub-rule (2) may, at any time, undertake to inspect or verify the information furnished by the association or institution.

FORM 58C

[See rule 11MA]

Report to be submitted under clause (ii) of sub-section (4) of section
35AC of the Income-tax Act, 1961 to the National Committee by
an approved association or institution

Reporting period
to

Certified that the above information is true to the best of my knowledge and belief.

Place:

Date:

Name and designation

FORM NO. 58A: Certificate of Expenditure of Payment In Respect Of Eligible Projects. FORM NO. 58A is relevant to an assessee who claims deduction under section 35AC of the Act in respect of any expenditure by way of payment of any sum to a public sector company or a local authority or to an association or institution approved by the National committee for carrying out any notified eligible project or scheme.

(1) The certificate referred to in clause (a) of sub-section (2) of section 35AC shall be in Form No. 58A.

(2) The certificate referred to in clause (b) of sub-section (2) of section 35AC shall be in Form No. 58B.

(3) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall, in respect of the 31st March in each financial year, deliver or cause to be delivered to the Secretary, National Committee, an annual report indicating the progress of work relating to the project/scheme during the year as well as the following information (please specify the information in respect of each contributor separately) :—

 (i)  Names of the contributors and their addresses.

(ii)  Permanent Account Number/G.I.R. Number of the contributors.

(iii)  Amount(s) of contribution.

(iv)  The project/scheme for which contribution was made.

 (v)  Total amount of contribution received during the previous year.

(vi)  Total cost of the project approved by the National Committee (with date of Committee’s approval).

(4) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall send an annual statement of donation received and the details of the project to the National Committee and to each contributor by 30th June, following the financial year in which the amounts are received.]

FORM NO. 58A

[See rule 11-O (1)]

Certificate of expenditure by way of payment in respect of eligible projects or schemes notified under section 35AC

1. Certified that
[name & address of donor] (P.A. No
has paid a sum of Rs.
[in figure]
[in words] on _________ [date] in cash/by cheque No. /Demand Draft No.

in respect of ____________ [name of project or scheme] project or scheme which has been notified under section 35AC vide Notification No. SO
dated
issued from File No.
at an estimated cost of Rs.
for assessment year(s)

2. It is further certified that the amount received from the donor is within the amount of the project/scheme approved by the National Committee under section 35AC of the Income-tax Act as may be seen from the following:

 

	Amount in Rs.
Amount received till date as donations from others prior to this donation :

 

Amount received from donor named in Paragraph 1

 

Total amount received for the project/scheme including the amount covered under this certificate

 

Total cost of the project/ scheme approved by the National Committee under section 35AC

 

3. An annual statement of donations received and the details of project will be sent to the National Committee and the donor by 30th June following the financial year in which the amounts are received.

 

Name		Signature
Address		Name
Permanent Account No. of the
donee organization.	Designation of the person managing the
	affairs of the donee organization
Date

FORM NO. 56FF: Form In Respect Of Special Economic Zone Reinvestment Allowance Reserve Account. FORM NO. 56FF is relevant only for undertakings which begin to manufacture or produce articles or thing or computer software in any special economic zone on or after 1-4-2003 which are eligible for deduction on its export profit on a graded scale with effect from the assessment year 2004-05.

(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to ³manufacture or produce such articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee :

Provided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive assessment years :

Provided further that where an undertaking initially located in any free trade zone or export processing zone is subsequently located in a special economic zone by reason of conversion of such free trade zone or export processing zone into a special economic zone, the period of ten consecutive assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the previous year in which the [undertaking began to manufacture or produce such articles or things or computer software] in such free trade zone or export processing zone :

⁵[Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be ninety per cent of the profits and gains derived by an undertaking from the export of such articles or things or computer software :]

Provided also that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the 1st day of April, [2012] and subsequent years.

⁷[(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computing the total income of an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2003, in any special economic zone, shall be,—

  (i) hundred per cent of profits and gains derived from the export of such articles or things or computer software for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, and thereafter, fifty per cent of such profits and gains for further two consecutive assessment years, and thereafter;

 (ii) for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic Zone Re-investment Allowance Reserve Account”) to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (1B) :

[Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub-section (1) of section 139.]

(1B) The deduction under clause (ii) of sub-section (1A) shall be allowed only if the following conditions are fulfilled, namely:—

 (a)  the amount credited to the Special Economic Zone Re-investment Allowance Reserve Account is to be utilised—

  (i)  for the purposes of acquiring new machinery or plant which is first put to use before the expiry of a period of three years next following the previous year in which the reserve was created; and

 (ii)  until the acquisition of new machinery or plant as aforesaid, for the purposes of the business of the undertaking other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India;

 (b) the particulars, as may be prescribed in this behalf, have been furnished by the assessee in respect of new machinery or plant along with the return of income for the assessment year relevant to the previous year in which such plant or machinery was first put to use.

(1C) Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve Account under clause (ii) of sub-section (1A),—

 (a) has been utilised for any purpose other than those referred to in sub-section (1B), the amount so utilised; or

 (b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a) of sub-section (1B), the amount not so utilised,

shall be deemed to be the profits,—

  (i) in a case referred to in clause (a), in the year in which the amount was so utilised; or

 (ii) in a case referred to in clause (b), in the year immediately following the period of three years specified in sub-clause (i) of clause (a) of sub-section (1B),

and shall be charged to tax accordingly.]

(2) This section applies to any undertaking which fulfils all the following conditions, namely :—

  (i) it has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year—

(a) commencing on or after the 1st day of April, 1981, in any free trade zone; or

(b) commencing on or after the 1st day of April, 1994, in any electronic hardware technology park, or, as the case may be, software technology park;

(c) commencing on or after the 1st day of April, 2001 in any special economic zone;

 (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence :

Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertakings as is referred to in section 33B, in the circumstances and within the period specified in that section;

(iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.

Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section.

(3) This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf.

Explanation 1.—For the purposes of this sub-section, the expression “competent authority” means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.

Explanation 2.—The sale proceeds referred to in this sub-section shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India.

[(4) For the purposes of [sub-sections (1) and (1A)], the profits derived from export of articles or things or computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking.]

(5) The deduction under [this section] shall not be admissible for any assessment year beginning on or after the 1st day of April, 2001, unless the assessee furnishes in the prescribed form, alongwith the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.

(6) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year, relevant to any subsequent assessment year,—

  (i) section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years [ending before the 1st day of April, 2001], in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year had been given full effect to for that assessment year itself and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of sub-section (1) of section 36, as the case may be, shall not apply in relation to any such allowance or deduction;

 (ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section , in so far as such loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years [ending before the 1st day of April, 2001];

(iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and

(iv) in computing the depreciation allowance under section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment year.

(7) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the undertaking referred to in section 80-IA.

[(7A) Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger,—

 (a) no deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and

 (b) the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting company as they would have applied to the amalgamating or the demerged company if the amalgamation or demerger had not taken place.]

[(7B) The provisions of this section shall not apply to any undertaking, being a Unit referred to in clause (zc) of section 2 of the Special Economic Zones Act, 2005, which has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone.]

(8) Notwithstanding anything contained in the foregoing provisions of this section, where the assessee, before the due date for furnishing the return of income under sub-section (1) of section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him, the provisions of this section shall not apply to him for any of the relevant assessment years.

(9) [Omitted by the Finance Act, 2003, w.e.f.
1-4-2004.]

(9A) [Omitted by the Finance Act, 2003, w.e.f. 1-4-2004.]

Explanation 1.—
[Omitted by the Finance Act, 2003, w.e.f.
1-4-2004.]

Explanation 2.—For the purposes of this section,—

  (i)  “computer software” means—

 (a) any computer programme recorded on any disc, tape, perforated media or other information storage device; or

 (b) any customized electronic data or any product or service of similar nature, as may be notified²by the Board,

which is transmitted or exported from India to any place outside India by any means;

 (ii) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder or any other corresponding law for the time being in force;

(iii) “electronic hardware technology park” means any park set up in accordance with the Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce and Industry;

(iv) “export turnover” means the consideration in respect of export [by the undertaking] of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India;

 (v) “free trade zone” means the Kandla Free Trade Zone and the Santacruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette, specify for the purposes of this section;

(vi) “relevant assessment year” means any assessment year falling within a period of ten consecutive assessment years referred to in this section;

(vii) “software technology park” means any park set up in accordance with the Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry;

(viii) “special economic zone” means a zone which the Central Government may, by notification in the Official Gazette, specify as a special economic zone for the purposes of this section.]

[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.]

[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting and polishing of precious and semi-precious stones.]

FORM NO. 56FF

[See rule 16DD]

Particulars to be furnished under clause (b) of sub-section (1B) of section 10A of the Income-tax Act, 1961

A. DETAILS OF SPECIAL ECONOMIC ZONE REINVESTMENT ALLOWANCE RESERVE ACCOUNT (IN RUPEES)

B. DETAILS OF NEW PLANT/MACHINERY PURCHASED OUT OF AMOUNTS WITHDRAWN FROM SPECIAL ECONOMIC ZONE REINVESTMENT ALLOWANCE RESERVE ACCOUNT

Verification

I/We,
S/o
being proprietor/partner/director of the undertaking named
having PAN No.
, situated in the Special Economic Zone
verify that the said undertaking has during the previous year, acquired the new plant/machinery, as mentioned above, for which the purchase price has been paid by making withdrawal from the Special Economic Zone Reinvestment Allowance Reserve Account maintained by the assessee.

FORM NO. 59: Application for Approval of Issue of Public Companies under Section 80c (2) Of Income Tax Act, 1961. FORM NO. 59 is required to be made the CBDT, by a public company or a public financial institution 3 months before it makes the eligible issue of capital for the purpose of obtaining approved of the CBDT unless this approval is obtained, subscribers to the issue cannot get the benefit of deduction under that provision.
The Board, before granting approval to a public company, [under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely :—

(1)  An application for approval has been made in the Form No. 59 by the public company three months before the [eligible issue of capital].

[Explanation.—For the purposes of this rule, “the eligible issue of capital” means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.]

(2) Every application shall be accompanied by the following documents, namely :—

(a)  a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956);

(b)  audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :

Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.

(3)  Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :—

(i)  twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board;

(ii)  the balance of such capital shall be invested within a period of three years from the date of approval.

(4)  Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.

(5)  The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be :

Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.

(6)  The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :—

(a)  if such public company fails to make investments as per conditions mentioned in sub-rule (3); or

(b)  if such public company fails to file the certificate referred to in sub-rule (4).]

FORM NO. 59

[See rule 20]

Application for approval of issue of public companies under section 80C (2) (xix) or under section 88(2) (xvi) of the Income-tax Act

 

 

 

 

 

 

 

 

 

11. Sources of proposed investment:

 

12. Schedule of development of infrastructure facility/ power project

 

 

14. Details of management:

 

 

 

 

 

I certify that the information furnished above is true to the best of my knowledge and belief.

 

 

 

 

 

FORM NO. 56H: Report under Section 10BA of the Income-Tax Act, 1961. FORM NO. 56H is relevant for undertakings deriving profit and gains from the export out of India of eligible articles and things (viz. all hand –made articles or things which are of artistic value and which require the use of wood as the main raw material), and who claim deduction under section 10BA with effect from the assessment year 2004-05.

(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export out of India of eligible articles or things, shall be allowed from the total income of the assessee :

Provided that where in computing the total income of the undertaking for any assessment year, deduction under section 10A or section 10B has been claimed, the undertaking shall not be entitled to the deduction under this section :

Provided further that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the 1st day of April, 2010 and subsequent years.

(2) This section applies to any undertaking which fulfils the following conditions, namely :—

(a)  it manufactures or produces the eligible articles or things without the use of imported raw materials;

(b)  it is not formed by the splitting up, or the reconstruction, of a business already in existence :

Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section;

(c)  it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.

Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of section 80-I shall apply for the purposes of this clause as they apply for the purposes of clause (ii) of sub-section (2) of that section;

(d)  ninety per cent or more of its sales during the previous year relevant to the assessment year are by way of exports of the eligible articles or things;

(e)  it employs twenty or more workers during the previous year in the process of manufacture or production.

(3) This section applies to the undertaking, if the sale proceeds of the eligible articles or things exported out of India are received in or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf.

Explanation.—For the purposes of this sub-section, the expression “competent authority” means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.

(4) For the purposes of sub-section (1), the profits derived from export out of India of the eligible articles or things shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things bears to the total turnover of the business carried on by the undertaking.

(5) The deduction under sub-section (1) shall not be admissible, unless the assessee furnishes in the prescribed form, along with the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.

(6) Notwithstanding anything contained in any other provision of this Act, where a deduction is allowed under this section in computing the total income of the assessee, no deduction shall be allowed under any other section in respect of its export profits.

(7) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the undertaking referred to in section 80-IA.

Explanation.—For the purposes of this section,—

(a)  “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999), and any rules made thereunder or any other corresponding law for the time being in force;

(b)  “eligible articles or things” means all hand-made articles or things, which are of artistic value and which requires the use of wood as the main raw material;

(c)  “export turnover” means the consideration in respect of export by the undertaking of eligible articles or things received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things outside India;

(d)  “export out of India” shall not include any transaction by way of sale or otherwise, in a shop, emporium or any other establishment situate in India, not involving clearance of any customs station as defined in the Customs Act, 1962 (52 of 1962).]

FORM NO. 56H

[See Rule 16F]

Report under section 10BA of the Income-tax Act, 1961

1. I/We have examined the accounts and records of
(name and address of the assessee with permanent account number) relating to the business of their undertaking named
engaged in export of hand-made articles or things made of wood as the main raw material during the year ended on the 31st March,

2. I/We certify that the deduction to be claimed by the assessee under sub-section (1) of section 10BA of the Income-tax Act, 1961, in respect of the assessment year __________is Rs.
which has been determined on the basis of the sale proceeds received by the assessee in convertible foreign exchange. The said amount has been worked out on the basis of the details in Annexure A to this form.

3. I/We certify that I/we have collected all the relevant information necessary for computing the deduction allowable under this section and have verified the same with reference to the accounts and records of the assessee.

4. In my/our opinion and to the best of my/our knowledge and according to the explanations given to me/us, the particulars given in the Annexure A are true and correct.

ANNEXURE A

[See paragraph 2 of Form No 56H]

Details relating to the claim by the exporter for deduction
under section 10BA of the Income-tax Act, 1961

 

FORM NO. 56F: Report under Section 10A of the Income-Tax Act, 1961. FORM NO. 56F is given by a Chartered Accountant to any person , who is relation to any state , is by virtue of the provision in sub section (2) of the section 226 of the companies Act, entitled to be appointed to act as an auditor of companies registered in that state.

(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to ³manufacture or produce such articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee :

Provided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive assessment years :

Provided further that where an undertaking initially located in any free trade zone or export processing zone is subsequently located in a special economic zone by reason of conversion of such free trade zone or export processing zone into a special economic zone, the period of ten consecutive assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the previous year in which the ndertaking began to manufacture or produce such articles or things or computer software] in such free trade zone or export processing zone :

[Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be ninety per cent of the profits and gains derived by an undertaking from the export of such articles or things or computer software :]

Provided also that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the 1st day of April, [2012] and subsequent years.

[(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computing the total income of an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2003, in any special economic zone, shall be,—

  (i) hundred per cent of profits and gains derived from the export of such articles or things or computer software for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, and thereafter, fifty per cent of such profits and gains for further two consecutive assessment years, and thereafter;

 (ii) for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic Zone Re-investment Allowance Reserve Account”) to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (1B) :

[Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub-section (1) of section 139.]

(1B) The deduction under clause (ii) of sub-section (1A) shall be allowed only if the following conditions are fulfilled, namely:—

 (a)  the amount credited to the Special Economic Zone Re-investment Allowance Reserve Account is to be utilised—

  (i)  for the purposes of acquiring new machinery or plant which is first put to use before the expiry of a period of three years next following the previous year in which the reserve was created; and

 (ii)  until the acquisition of new machinery or plant as aforesaid, for the purposes of the business of the undertaking other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India;

 (b) the particulars, as may be prescribed in this behalf, have been furnished by the assessee in respect of new machinery or plant along with the return of income for the assessment year relevant to the previous year in which such plant or machinery was first put to use.

(1C) Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve Account under clause (ii) of sub-section (1A),—

 (a) has been utilised for any purpose other than those referred to in sub-section (1B), the amount so utilised; or

 (b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a) of sub-section (1B), the amount not so utilised,

shall be deemed to be the profits,—

  (i) in a case referred to in clause (a), in the year in which the amount was so utilised; or

 (ii) in a case referred to in clause (b), in the year immediately following the period of three years specified in sub-clause (i) of clause (a) of sub-section (1B),

and shall be charged to tax accordingly.]

(2) This section applies to any undertaking which fulfils all the following conditions, namely :—

  (i) it has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year—

(a) commencing on or after the 1st day of April, 1981, in any free trade zone; or

(b) commencing on or after the 1st day of April, 1994, in any electronic hardware technology park, or, as the case may be, software technology park;

(c) commencing on or after the 1st day of April, 2001 in any special economic zone;

 (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence :

Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertakings as is referred to in section 33B, in the circumstances and within the period specified in that section;

(iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.

Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section.

(3) This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf.

Explanation 1.—For the purposes of this sub-section, the expression “competent authority” means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.

Explanation 2.—The sale proceeds referred to in this sub-section shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India.

[(4) For the purposes of sub-sections (1) and (1A)], the profits derived from export of articles or things or computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking.]

(5) The deduction under this section] shall not be admissible for any assessment year beginning on or after the 1st day of April, 2001, unless the assessee furnishes in the prescribed form, alongwith the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.

(6) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year, relevant to any subsequent assessment year,—

  (i) section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years [ending before the 1st day of April, 2001], in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year had been given full effect to for that assessment year itself and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of sub-section (1) of section 36, as the case may be, shall not apply in relation to any such allowance or deduction;

 (ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years [ending before the 1st day of April, 2001];

(iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and

(iv) in computing the depreciation allowance under section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment year.

(7) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the undertaking referred to in section 80-IA.

[(7A) Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger,—

 (a) no deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and

 (b) the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting company as they would have applied to the amalgamating or the demerged company if the amalgamation or demerger had not taken place.]

[(7B) The provisions of this section shall not apply to any undertaking, being a Unit referred to in clause (zc) of section 2 of the Special Economic Zones Act, 2005, which has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone.]

(8) Notwithstanding anything contained in the foregoing provisions of this section, where the assessee, before the due date for furnishing the return of income under sub-section (1) of section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him, the provisions of this section shall not apply to him for any of the relevant assessment years.

(9) [Omitted by the Finance Act, 2003, w.e.f.
1-4-2004.]

(9A) [Omitted by the Finance Act, 2003, w.e.f. 1-4-2004.]

Explanation 1.—
[Omitted by the Finance Act, 2003, w.e.f.
1-4-2004.]

Explanation 2.—For the purposes of this section,—

  (i)  “computer software” means—

 (a) any computer programme recorded on any disc, tape, perforated media or other information storage device; or

 (b) any customized electronic data or any product or service of similar nature, as may be notified by the Board,

which is transmitted or exported from India to any place outside India by any means;

 (ii) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder or any other corresponding law for the time being in force;

(iii) “electronic hardware technology park” means any park set up in accordance with the Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce and Industry;

(iv) “export turnover” means the consideration in respect of export [by the undertaking] of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India;

 (v) “free trade zone” means the Kandla Free Trade Zone and the Santacruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette, pecify for the purposes of this section;

(vi) “relevant assessment year” means any assessment year falling within a period of ten consecutive assessment years referred to in this section;

(vii) “software technology park” means any park set up in accordance with the Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry;

(viii) “special economic zone” means a zone which the Central Government may, by notification in the Official Gazette, specify as a special economic zone for the purposes of this section.]

[Explanation 3.—For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.]

[Explanation 4.—For the purposes of this section, “manufacture or produce” shall include the cutting and polishing of precious and semi-precious stones.]

FORM NO. 56F

[See rule 16D]

Report under section 10A of the Income-tax Act, 1961

 

1. I/We
have examined the accounts and records of
(name and address of the assessee with permanent account number) relating to the business of their undertaking named
engaged in the export of articles or things or computer software during the year ended on the 31st March

2. I/We certify that the undertaking is located at
(exact location of the undertaking) registered under
(name of the FTZ/EPZ/EHTP/STP/SEZ) free trade zone/export processing zone/electronic hardware technology park/software technology park/special economic zone and that the deduction to be claimed by the assessee under section 10A of the Income-tax Act, 1961 in respect of the assessment year
is Rs.

Which has been determined on the basis of the details in Annexure A to this form?

 

3. I/We certify that I/We
have collected all the relevant information necessary for computing the deduction allowable under this section and have verified the same with reference to the accounts and records of the assessee.

4. In my/our
opinion and to the best of my/our
knowledge and according to the explanations given to me/us, the particulars given in the Annexure A are true and correct.

 

Date	Signed
	Accountant

 

 

ANNEXURE A

[See paragraph 2 of Form 56F]

Details relating to the claim by the exporter for deduction under section 10A of the Income-tax Act, 1961

 

1.

Name of the assessee

 

2.

Assessment year

 

3.

Name of the undertaking

 

4.

Location and address of the undertaking

 

5.

Nature of business of the undertaking

 

6.

Date of initial registration in FTZ/EPZ/SEZ

 

7.

Date of commencement of manufacture or production

 

8.

Number of the consecutive year for which the deduction is claimed

 

9.

Total turnover of the business

 

10.

Total turnover of the undertaking

 

11.

Total profits derived by the business

 

12.

Total profits derived by the undertaking

 

13.

Total export turnover

 

14.

Export proceeds received in convertible foreign exchange of the undertaking in respect of

a. articles or things, or

b. computer software

 

15.

Sale proceeds of the undertaking in respect of

a. articles or things, or

b. computer software

 

16.	Please specify
	(i) whether the full consideration in convertible foreign exchange for exports made by the undertaking was brought into India within a period of six months from the end of the previous year	*Yes/No

(ii) If not, whether it was brought into India within such further period in the previous year as allowed by the competent authority

*Yes/No

(iii) Specify the amount and the relevant previous year in case such amount is brought into India in convertible foreign exchange beyond the period of six months from the end of relevant previous year and with the approval of the Competent authority, where such amount relates to any other previous year. Also state the name of the authority and the period up to which the approval was accorded

(iv) Amount of sale proceeds, if any, that are credited to a separate account maintained by the assessee with any bank outside India and the reference number of Reserve Bank of India according to permission of the same

 

17.

Amount of deduction under section 10A to which the assessee is entitled with the working sheet

 

1

Qualifications, if any, on the above

FORM 58D: Report To Be Submitted By A Public Sector Company, Local Authority Or An Approved Association Or Institution. FORM 58D is relevant to a public sector company or a local authority or an association or institution approved by the national committee which has received donation for carrying out any notified eligible projects or scheme as envisaged in section 35 AC(5)(ii) of the act.

(1) The report to be furnished by a public sector company or local authority or an association or institution in respect of the eligible project or scheme, under clause (ii) of sub-section (5) of section 35AC shall be in Form No. 58D.

(2) The report referred to in sub-rule (1) shall be furnished to the National Committee before the expiry of three months from the end of the financial year.

(3) The National Committee, after receipt of the report referred to in sub-rule (2) may, at any time, undertake to inspect or verify the information furnished by the public sector company or local authority or association or institution.]

FORM 58D

[See rule 11MAA]

Report to be submitted by a public sector company, local authority
or an approved association or institution under clause (ii) of
sub-section (5) of section 35AC of the Income-tax Act,
1961 to the National Committee on a notified
eligible project or scheme

Reporting period
to

Performance of the Eligible Project or Scheme during the Reporting Period

    (ii)    wells

    (iii)    tube-wells

    (iv)    laying of pipes

    (v)    other    (n) imparting education in the field of engineering and medicine in rural areas(ii) urban slums        (i)    pump-sets

    (ii)     wells

    (iii)     tube-wells

    (iv)     laying of pipes

    (v)     other    (o) development of degraded non-forest area or forestation programme(b) dwelling units for Economically Weaker Section (EWS)             (p) relief and rehabilitation of handicapped individuals(c) school buildings for children of Economically Weaker Section (EWS)             (q) any other programme to uplift the rural poor or urban slums(d) non-conventional and renewable energy systems        (i)     solar energy

(ii)    wind energy

(iii)     tidal energy

    (iv)     other     (e) transport infrastructure        (i)     bridges

(ii) public highways

(iii) other roads     (f) promotion of sports              (g) pollution control              (h) exclusively for women and children below twelve years in rural areas

(i) educational institutions

(ii) hospitals and medical facilities

Certified that the above information is true to the best of my knowledge and belief.

FORM NO. 58B for Certificate of Expenditure Incurred Directly By a Company In Respect Of Eligible Projects. FORM NO. 58B is relevant to an assessee who claims deduction under section 35AC of the Act in respect of expenditure incurred by him / it in any notified eligible project or scheme and the same is covered by section 35AC(2)(b). I.e. payment is made to any person other than public sector company, local authority or an approved association or institution.

(1) The certificate referred to in clause (a) of sub-section (2) of section 35AC shall be in Form No. 58A.

(2) The certificate referred to in clause (b) of sub-section (2) of section 35AC shall be in Form No. 58B.

(3) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall, in respect of the 31st March in each financial year, deliver or cause to be delivered to the Secretary, National Committee, an annual report indicating the progress of work relating to the project/scheme during the year as well as the following information (please specify the information in respect of each contributor separately) :—

 (i)  Names of the contributors and their addresses.

(ii)  Permanent Account Number/G.I.R. Number of the contributors.

(iii)  Amount(s) of contribution.

(iv)  The project/scheme for which contribution was made.

 (v)  Total amount of contribution received during the previous year.

(vi)  Total cost of the project approved by the National Committee (with date of Committee’s approval).

(4) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall send an annual statement of donation received and the details of the project to the National Committee and to each contributor by 30th June, following the financial year in which the amounts are received.]

FORM NO. 58B

[See rule 11-O (2)]

Certificate of expenditure incurred directly by a company in respect of eligible projects or schemes notified under section 35AC

This is to certify that
[name & address of the contributor] having permanent Account Number/G.I.R. Number
has incurred an expenditure of Rs.
[In figures and words] during the period from
to
during the financial year ________ in respect of project or scheme

Which has been notified under section 35AC vide Notification No.? SO
dated ________ issued from File No.
At an estimated cost of Rs.
For assessment year(s)

This certificate is to be signed by –

(i) A chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(ii) any person who, in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an 12/31/2012

FORM NO. 56B for Condensed Financial Information Income Statement. FORM NO. 56B is relevant to an assessee who wants Condensed financial information Income statement and this form is signed by the applicant.

(1) For the purposes of clause (23F) of section 10, the prescribed authority shall be the Director of Income-tax (Exemptions) having jurisdiction over the venture capital fund or the venture capital company who makes application for approval under sub-rule (2).

(2) An application for approval shall be made in Form No. 56A by a venture capital fund or a venture capital company to the Director of Income-tax (Exemptions) referred to in sub-rule (1).

(3) Every application under sub-rule (2) may be made in any previous year in which any income by way of dividend or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking shall not be included in computing the total income of such venture capital fund or venture capital company.

(4) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :—

(a)  a copy of trust deed or certificate of incorporation under the Companies Act, 1956 (1 of 1956);

(b)  balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made;

(c)  Forms 56B and 56C duly filled in and signed by the applicant; and

(d)  a copy of the certificate of registration issued by the Securities and Exchange Board of India.

(5) The Director of Income-tax (Exemptions) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely :—

(a)  the venture capital fund or the venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(b) [* * *]

(c)   [* * *]

(d)  a venture capital fund or a venture capital company, as the case may be, shall not invest more than [twenty] per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;

(e)  a venture capital fund or a venture capital company, as the case may be, shall not make investment of more than forty per cent in the equity capital of one venture capital undertaking;

(f)  every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Director of Income-tax (Exemptions) before the due date of filing of the return under sub-section (1) of section 139.

(6) The Director of Income-tax (Exemptions) shall pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be :

Provided that the Director of Income-tax (Exemptions) shall not refuse the approval except in concurrence with the Director-General of Income-tax (Exemptions):

Provided further that every venture capital fund or venture capital company, as the case may be, shall be given an opportunity of being heard before passing an order under this rule.

(7) The Director of Income-tax (Exemptions) shall withdraw the approval granted under sub-rule (6) in the following circumstances, namely :—

(a)  if the venture capital fund or the venture capital company—

  (i)  fails to make investments in the manner specified in sub-rule (5);

 (ii)  invests more than [twenty] per cent of the monies raised by a venture capital fund or [twenty] per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;

(iii)  makes an investment of more than forty per cent in the equity capital in one venture capital undertaking;

(iv)  fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (f) of sub-rule (5);

 (v)  violates the provisions of the Act or rules made thereunder;

(b)  if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.]

FORM NO. 56B

[See clause (c) of sub-rule (4) of rule 2D]

Condensed financial information

Income statement

 

	(a) Dividend	Rs.
	(b) Trading	Rs.
	(c) Other Income	Rs.
	Total income [(a)+(b)+(c)]	Rs.

 

2.	Expenses
	(a) Director’s remuneration	Rs.
	(b) Trusteeship fees	Rs.
	(c) Custodian fees	Rs.
	(d) Registrar’s fees	Rs.
	(e) Other expenses	Rs.
	Total expenses [(a) + (b) + (c) + (d) + (e)]	Rs.

 

3.

Gross profit (1-2)

Rs.

 

4.

Depreciation

Rs.

 

5.

Net profit before tax (3-4)

Rs.

 

6.

Tax (income-tax)

Rs.

 

7.

Profit after tax (5-6)

Rs.

 

8.

Income distributed/dividend declared

Rs.

 

9.

Retained earnings (7-8)

Rs.

 

Place
Date	Signature and designation of the applicant