How much is the maximum deduction available to a company operating in SEZ?


How much is the maximum deduction available to a company operating in SEZ?

100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

What are the special provision in respect of newly establish units in SEZ?

Provided also that where a Unit 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 and has completed the period of ten consecutive assessment years …

What is Section 115BAC of Income Tax Act?

The new Section 115BAC of the Income-tax Act, 1961 provides that a person, being an individual or an undivided Hindu family (HUF) having income other than income from profession or business, may exercise the option concerning of a previous year to be taxed under the Section 115 BAC along with his/her return of income …

What is SEZ reinvestment reserve account?

Creation of SEZ Reinvestment Reserve As per the provision, a SEZ Reinvestment reserve is created by transferring the profits of the previous year to a special reserve account, by way of a debit to the profit and loss account and credit to the “Special Economic Zone Reinvestment Reserve Account”.

What is SEZ exemption?

Any supply of goods or services or both to a Special Economic Zone developer/unit will be considered to be a zero-rated supply. That means these supplies attract Zero tax rate under GST. In other words, supplies into SEZ are exempt from GST and are considered as exports.

What is Section 10A exemption?

’10A. Special provision in respect of newly established industrial undertakings in free trade zones. —(1) Subject to the provisions of this… section, any profits and gains derived by an assessee from an industrial undertaking to which this section applies shall not be included in the total income of the assessee.

What is Section 80JJAA?

Section 80JJAA is a facility for claiming a deduction for the recruitment of new or additional employees. The section has been made available in the Income Tax Act to encourage employers to recruit fresh employees on a periodic basis.

Who should opt for 115BAC?

The above table shows that it is beneficial to opt for the New Tax Regime of Section 115BAC if your Income is more than Rs. 12,25,000 with your eligible Deduction under 80C and Section 80D (it has been assumed that Deduction of Rs. 50,000 shall be Claimed under Section 80D).

What is Section 10 10AA in income tax?

(i) Tax treatment in the hands of Central Government or State Government employees: In case of a Central Government or State Government employee, any amount received for encashment of accumulated leave at the time of retirement/superannuation is exempt from tax under section 10(10AA)(i).

What is Section 10B of Income Tax Act?

Form 10B enables a taxpayer to file an audit report if the taxpayer has applied for or is already registered as charitable or religious trust / institution by filing Form 10A. Form 10B is accessed by the CA added by the taxpayer under the My CA service and is assigned the relevant form.

What is difference between SEZ and non SEZ?

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country’s national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration.

Who is eligible for SEZ?

Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India.

What is Section 10 10AA of income tax?

What is Form 10A and 10B?

Form 10B is to be furnished by a charitable or religious trust or institution that has been registered u/s 12A or who has submitted an application for registration by filing Form 10A. Form 10B is an audit report which is provided by a CA upon nomination by the taxpayer.

When was 80JJAA introduced?

Section 80JJAA enables an employer to enjoy tax sops or you can say – “cashback” for payment of salaries to new employees employed by him. These sops were first introduced in the year 2016 but were limited only to some specific assessees.

What is sub-section 5 of section 115BAC?

(1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAC by a person, being an individual or Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall be in Form No.