The Income-tax Act, 1961
Bare Act
(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 manufacture 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 refer… Read the complete text with KanoonGPT Pro.
Simplified Act
Section 10A of The Income-tax Act, 1961 - Simplified Explanation:
(1) If a company makes money by exporting goods or computer software, it can subtract some of those profits from its total income when paying taxes. This tax break lasts for 10 years starting from the year the company began making those products.
Note: I… Read the complete text with KanoonGPT Pro.
Explanation using examples
Imagine a company named "TechExports Pvt. Ltd." that manufactures computer software and begins operations in a Special Economic Zone (SEZ) on April 1, 2021. According to Section 10A of the Income-tax Act, 1961, TechEx… Read the complete text with KanoonGPT Pro.
