Tax holidays in the form of deductions are available for private sectors and incentives to industries located in special area/regions are listed below:
Infrastructure Sectors (Section 80-IA)
Deduction of 100% of the profits
from business for a period of 10 years for:
Development or operation and
maintenance of ports, airports, roads,
highways, bridges, rail systems, inland
water ways, inland port or navigational
channel in sea, water supply projects, water treatment systems, irrigation projects, sanitation and sewage projects,
and solid waste management systems.
Generation and distribution of power that commence before March 31, 2010
Laying and operating a cross country natural gas distribution network.
Mineral Oil (Section 80-IB)
Deduction of 100% of profits
from the Business of Refining
Mineral Oil for a period of 10 Years for:
Undertaking wholly owned by a public
sector Company or any other company in which Public Sector Company hold Forty Nine Percent of voting rights.
Undertaking starts Refining
on or before March 31, 2012.
Hospital (Section 80-IB)
Deduction of 100% of profits
from business of operating and maintaining Hospital for a period of 5 years for:
Hospital is constructed and has started
or starts functioning at any time during
April 1, 2008 & March 31, 2013.
Hospital has at least one hundred beds
for patients.
Hospital is located anywhere in India other than excluded area.
Hotels and Convention Centre in NCR (Sec 80-ID)
Deduction of 100% of the profits
from business of hotels and convention centres for a period of 5 years for
Hotel and Convention Centre located
in National Capital Territory of
Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad.
Hotel is constructed and has started or starts functioning at any time during April 1, 2007 and March 31, 2010. Likewise, the Convention Centre is constructed at any time during April 1, 2007 and March 31, 2010.
Hotel located in the specified
district
having a World Heritage site. Hotel is
constructed and has started or starts functioning at any time during April 1, 2008 and March 31, 2013.
Undertakings in North Eastern States (Sec 80-IE)
Deduction of 100% of the profits
from business for a period of 10 years for:
Manufacture or production of goods or undertakes substantial expansion during April 1, 2007 and March 31, 2017. Providing eligible services during April 1, 2007 and March 31, 2017.
Deduction is not available in respect of manufacture or production of tobacco, pan masala, plastic carry bag of less than 20 microns or goods produced by petroleum and gas refineries
.
Eligible services are hotel (2 star or above), nursing home(25 beds or more), old age homes, vocational training institutes for hotel management, catering and food crafts, entrepreneurship development, nursing and paramedical, civil aviation related training, fashion designing and industrial training, IT related training centres, IT hardware manufacture units and bio-technology.
The aforesaid activity takes place in any North-Eastern States(i.e., Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura).
Tax Exemptions
Following tax exemptions are available in different sectors:
Deduction of 100% of the Profit
from Business of
Development or operation and
maintenance of ports, airports, roads,
highways, bridges etc. (Sec 80-IA).
Generation, distribution and
transmission of power (Sec 80-IA).
Development, operation and
maintenance of an Industrial Park or
SEZ (Sec 80-IAB).
By undertakings set up in certain
notified
areas or in certain thrust sector
industries in the North Eastern states
and Sikkim (Sec 80-IC).
By undertakings set up in certain
notified
areas or in certain thrust sector
industries in Uttaranchal and Himachal
Pradesh (Sec 80-IC).
Derived from export of articles or
software by undertakings in FTZ,
EHTP/STP (Sec 10A).
Derived from export of articles or
software by undertakings in SEZ
(Sec 10AA).
Derived from export of articles or software by 100% EOU (Sec 10B).
An offshore banking unit situated in SEZ from business activities with units located in the SEZ (Sec 80LA).
Derived by undertakings engaged in Business of operating and maintaining Hospital located anywhere in India other than excluded area. (Sec 80-IB)
Derived by an undertaking engaged in the integrated business of handling, storage and transportation of food grains (Sec 80-IB).
Derived by an undertaking engaged in the commercial production or refining
of mineral oil (Sec 80-IB).
Derived by an undertaking from export of wood based handicrafit
(Sec 10BA).
