The Finance Bill introduced by the Union Finance Minister Arun Jaitley last day proposed that the industrial undertakings cannot avail the benefit of section 80 deductions under the Income Tax Act if the return was filed after the due date.
The benefits which are to be disallowed are as per S. 80-IA (companies engaged in infrastructure development); 80IAB (companies engaged in SEZ); 80IB (companies engaged in other than infra development); 80IC (companies in special category States); 80ID (hotels & convention Centre in specified areas) & 80IE (companies from North Eastern States. Mr. Jaitley has now cast the onus on the assessee claiming deductions under several other similar provisions.
In this background, it is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading “C.—Deductions in respect of certain incomes” in Chapter VIA shall not be allowed unless the return of income is filed by the due date.
The provision is applicable for the assessment year 2018-19 and subsequent assessment years since amendment will come into force with effect from 1st April 2018.
