1. Applicability: Any undertaking which commences its operation during the period beginning on the 01/04/2007 and ending before 01/04/2017 in any of the north-eastern states to-
- Manufacture or produce any eligible article or thing,
- Undertake substantial expansion to manufacture or produce any eligible article or thing ,
- Carry on any eligible business
2. Bar on formation style:
- It is not formed by splitting up of or reconstruction of a business already in existence.
- It is not formed by the transfer to a new business of machinery or plant previously used for any purpose except under the following circumstances-
- Such plant and machinery is imported
- Such plant and machinery is previously not used in India
- No depreciation on such plant and machinery is allowed to any person for any assessment year
- Value of plant and machinery so transferred does not exceed 20% of the total value of plant and machinery
3. Amount of deduction: 100% of profits and gains derived from the business for 10 Consecutive assessment years commencing from the previous year of manufacture, production or substantial expansion.
4. No deduction:
- No deduction shall be allowed where the total period of deduction inclusive of the period of deduction u/s 80-IE/ 80-IC/80-IB (4)/10C exceeds 10 assessment years.
- No deduction shall be allowed under any other section contained in Chapter VIA or Sections 10A/10AA/10B/10BA in relation to the profits and gains of the undertaking.
- Deduction u/s 80-IA will be allowed only if the assessee furnishes the return of income u/s 139(1)
5. The provisions of section 80-IA (5)/ (8)/ (9)/ (10)/ (11) shall, so far as may be, apply to the eligible undertaking.
6. Condition: Deduction under section 80-IE will be allowed only if the assessee furnishes return of income u/s 139(1).
