The Central Government, on 22nd December 2017, notified that the receipts received by the SEEPZ Special Economic Zone Authority which is constituted under the Special Economic Zone Act, 2005. is exempt from Income Tax under Section 10(46) of the Income Tax Act, 1961.
As per section 10(46) of the Income Tax Act, exemption can be provided to income earned by a notified body, authority, board, trust or commission which is set up or constituted by a Central State or Provincial Act or constituted by the Central Government or State Government with the object of regulating or administering an activity for the benefit of the general public.
Santacruz Electronic Export Processing Zone (SEEPZ) was set up on 1st May, 1973 as uni-product EPZ exclusively for manufacture and export of electronic items in an area of 110 acres, which over the years has become a land mark of Mumbai. The objective was of (a) accelerating the progress of electronics manufacturing in India (presumably encompassing the technology transfer objective) and (b) to take advantage of the growing electronics world market (export and foreign exchange objectives).
As per the present notification, the receipts by the SEEPZ Special Economic Zone Authority under the head lease rentals/Service charges, income by way of Gate Pass Entry Fees, Fine & Penalties from various units and other misc. income (Sale of garbage) and interest on Bank Deposits and Investments are exempted from income tax subject to conditions specified in the Act.
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