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Questions and Answers
What is the maximum deduction percentage allowed for an industrial undertaking in backward States under Sec. [80IB]?
The maximum deduction allowed is either 100% or 30%, depending on the specific case.
How long is the duration for which a hospital operating in a rural area can claim a 100% profit deduction under Sec. [80IB(11B)]?
A hospital can claim a 100% profit deduction for a period of five consecutive assessment years.
Which states are specified under Sec. [80IC] for claiming a 100% deduction on profits from industrial undertakings?
The specified states are Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern States.
Under what condition can an industrial undertaking in a backward district receive a 100% deduction?
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What is the purpose of the deductions allowed under Sec. [80IB] and [80IC]?
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Study Notes
Deductions for Industrial Undertakings
- [80IB] is a provision that allows for deductions on profits of industrial undertakings situated in backward states or districts.
- Businesses can receive either a 100% or 30% deduction for a period of 10 years, depending on individual circumstances.
- [80IB(11B)] is a specific provision focusing on hospitals operating in rural areas.
- Hospitals benefit from 100% deduction on their business profits for five consecutive assessment years, starting from the initial assessment year.
- [80IC] covers industrial undertakings located in states like Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and the North-Eastern states.
- These businesses are eligible for a 100% deduction on their profits.
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Description
Explore the provisions under sections 80IB, 80IB(11B), and 80IC that allow deductions on profits for industrial undertakings in specific regions. Gain insights into how these deductions can benefit businesses, especially hospitals in rural areas and industries in backward states. Test your understanding of these tax provisions and their implications.
