Indian company or Person assessee who is resident in India engaged in business of export of Film software, telephone software, music software, television news software including telecast right the amount to the extent of profit shall be allowed as deduction under this section.
Provisions in the Income Tax Act related to Section 80HHF
80HHF (1) Where an assessee, being an Indian company [or a person (other than a company) resident in India], is engaged in the business of export or transfer by any means out of India, of any film software, television software, music software, television news software, including telecast rights (hereafter in this section referred to as the software or software rights), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, [a deduction to the extent of profits, referred to in sub-section (1A),] derived by the assessee from such business.
(1A) For the purposes of sub-section (1), the extent of deduction of profits
shall be an amount equal to-
(i) eighty per cent of such profits for an assessment year beginning on the 1st
day of April, 2001;
[(ii) seventy per cent thereof for an assessment year beginning on the 1st day
of April, 2002;
(iii) fifty per cent thereof for an assessment year beginning on the 1st day of
April, 2003;
(iv) thirty per cent thereof for an assessment year beginning on the 1st day of
April, 2004,]
and no deduction shall be allowed in respect of the assessment year beginning on
the 1st day of April, 2005 and any subsequent assessment year.
(2) The deduction specified in sub-section (1) shall be allowed only if the consideration in respect of the software or software rights referred to in that sub-section is received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or within such further period as the competent authority may allow in this behalf.
(3) For the purposes of sub-section (1), profits derived from the business referred to in that sub-section shall be the amount which bears to the profits of the business, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee.
(4) The deduction under sub-section (1) shall not be admissible unless the assessee furnishes in the prescribed form95, along with the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.
(5) Where a deduction under this section is claimed and allowed in respect of profits of the business referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such profits under any other provision of this Act for the same or any other assessment year.
(6) Notwithstanding anything contained in this section, no deduction shall be allowed in respect of the software or software rights referred to in sub-section (1), if such business is prohibited by any law for the time being in force.
Explanation.-For the purposes of this section,-
(a) "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange;
(b) "convertible foreign exchange" shall have the meaning assigned to it in clause (a) of the Explanation to section 80HHC;
(c) "export turnover" means the consideration in respect of the software or software rights specified in clauses (d), (e), (g), (h) and (i), received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (2), but does not include freight, telecommunication charges or insurance attributable to the delivery of such software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India;
(d) "film software" means a copy of a cinematograph film made by any process analogous to cinematography on acetate polyester or celluloid film positive, magnetic tape, digital media or other optical or magnetic devices and certified by the Board of film certification constituted by the Central Government under section 3 of the Cinematograph Act, 1952 (37 of 1952);
(e) "music software" includes series of sounds or music recorded on magnetic tape, cassette, compact discs and digital media which can be played or reproduced on any appropriate apparatus;
(f) "profits of the business" means the profits of the business as computed under the head "Profits and gains of business or profession" as reduced by-
(A) ninety per cent of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits; and
(B) the profits of any branch, office, warehouse or any other establishment of the assessee situated outside India;
(g) "telecast rights" means a licence or contract to exhibit motion pictures or television programmes over a television network either through terrestrial transmission or through a satellite broadcast in a specified territory;
(h) "television news software" means a collection of sounds and images, reportage, data and voice of actualities broadcast either through terrestrial transmission, wire or satellite, live or pre-recorded on video cassettes or digital media;
(i) "television software" means any programme or series of sounds and images recorded on film or tape or digital media or broadcast through terrestrial transmitter, satellite or any other means of diffusion;
(j) "total turnover" shall not include-
(A) any sum referred to in clauses (iiia), (iiib) and (iiic) of section 28;
(B) any freight, telecommunication charges or insurance attributable to the delivery of the film software, music software, telecast rights, television news software, or television software as defined in clause (d), (e), (g), (h) or (i), as the case may be, outside India;
(C) expenses, if any, incurred in foreign exchange in providing the technical services outside India.
Income Tax Deductions Chapter VIA
Section 80B meaning of Gross Total Income under Income Tax Act
Section 80CCB Deduction in respect of investment made under Equity Linked Savings Scheme
Section 80CCC Deduction in respect of contribution to certain pension funds
Section 80CCD Deduction in respect of contribution to pension scheme of Central Government
Section 80CCE Limit on deductions under sections Section 80C, 80CCC and 80CCD
Section 80CCG Deduction in respect of investment made under an equity savings scheme
Section 80D Deduction in respect of health insurance premia
Section 80DDB Deduction against Medical Treatment Expenses etc incurred
Section 80E Deduction against interest on loan taken for higher education
Section 80EE Deduction against interest on loan taken for residential house property
Section 80G Deduction against donations to certain funds, charitable institutions, etc
Section 80GG Deductions against rents paid
Section 80GGA Deduction in respect of certain donations for scientific research or rural development
Section 80GGB Deduction in respect of contributions given by companies to political parties
Section 80GGC Deduction against contributions given by any person to political parties
Section 80HHB Deduction in respect of profits and gains from projects outside India
Section 80HHBA Deduction against profits and gains from housing projects in certain cases
Section 80HHC Deduction in respect of profits retained for export business
Section 80HHD Deduction of earnings in convertible foreign exchange
Section 80HHE Deduction of profits from export of computer software
Section 80HHF Deduction of profits and gains from export or transfer of film software, etc
Section 80I Deduction profits and gains from industrial undertakings after a certain date, etc
Section 80IE Special provisions in respect of certain undertakings in North-Eastern States
Section 80JJAA Deduction of employment of new workmen
Section 80O Deduction of royalties, etc., from certain foreign enterprises
Section 80P Deduction of income of co-operative societies
Section 80Q Deduction of profits and gains from the business of publication of books
Section 80QQA Deduction of professional income of authors of text books in Indian languages
Section 80QB Deduction of royalty income, etc., of authors of certain books other than text-books
Section 80RR Deduction of professional income from foreign sources in certain cases
Section 80RRA Deduction of remuneration received for services rendered outside India
Section 80RRB Deduction of royalty on patents
Section 80TTA Deduction of interest on deposits in savings account