Section 10-AA - Rationalisation of
provisions of Section 10AA
Under the existing provisions
deduction is allowed to an assessee from his the total income in respect of
profits and gains from his Unit operating in SEZ, subject to certain
However, certain courts have
taken a view (in matters pertaining to section 10A which also contains similar
provision) that the deduction is to be allowed from the total income of the
undertaking and not from the total income of the assessee.
In view of the above, it is
proposed to clarify that the amount of deduction referred to in section 10AA
shall be allowed from the total income of the assessee computed in accordance
with the provisions of the Act before giving effect to the provisions of the
section 10AA and the deduction under section 10AA in no case shall exceed the said
The amendment will be effective
from 1st April 2018.