Section 280ZD of ITA, 1961 : Section 280Zd: [Omitted]

Explanation using Example

Imagine a manufacturing company, XYZ Pvt. Ltd., that specializes in producing solar panels. Prior to April 1, 1990, the Indian government provided incentives in the form of tax credit certificates to manufacturers for increasing the production of certain goods deemed important for the economy. XYZ Pvt. Ltd. could have taken advantage of this provision to receive a tax credit for increasing its production of solar panels, which are considered a sustainable energy source. However, since this section of the Income-tax Act, 1961 (Section 280ZD) was omitted with effect from April 1, 1990, the company can no longer apply for or receive such tax credit certificates for increased production post this date. The omission of this provision means that the specific incentive that was once available under this act is no longer in force.