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Unit 5: Exemptions and Deductions – II

2. Convertible foreign exchange means foreign exchange which is for the time being Notes
treated by the Reserve Bank of India as convertible foreign exchange for the purposes
of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made there
under or any other corresponding law for the time being in force

3. Electronic hardware technology park means any park set up in accordance with the
Electronic Hardware Technology Park (EHTP) Scheme notified by the Government
of India in the Ministry of Commerce and Industry
4. Export turnover means the consideration in respect of export of articles or things or
computer software received in, or brought into, India by the assessee in convertible
foreign exchange in accordance with sub-section (3), but does not include freight,
telecommunication charges or insurance attributable to the delivery of the articles
or things or computer software outside India or expenses, if any, incurred in foreign
exchange in providing the technical services outside India

5. Free trade zone means the Kandla Free Trade Zone and the Santacruz Electronics
Export Processing Zone and includes any other free trade zone which the Central
Government may, by notification in the Official Gazette, specify for the purposes of
this section
6. Relevant assessment year means any assessment year falling within a period of ten
consecutive assessment years referred to in this section
7. Software technology park means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of
Commerce and Industry
8. Special economic zone means a zone which the Central Government may, by
notification in the Official Gazette, specify as a special economic zone for the purposes
of this section.

5.1.3 Consequences of Amalgamation, Demerger and Section 10A

Where any undertaking of an Indian company which is entitled to the deduction under this
section is transferred, before the expiry of the period specified in this section, to another Indian
company in a scheme of amalgamation or demerger:
(a) no deduction shall be admissible under this section to the amalgamating or the demerged
company for the previous year in which the amalgamation or the demerger takes place;
and
(b) the provisions of this section shall, as far as may be, apply to the amalgamated or the
resulting company as they would have applied to the amalgamating or the demerged
company if the amalgamation or demerger had not taken place.

Caselet Nasscom for Tax Exemption under Section 10A or 10B

ew Delhi: As part of its budget recommendations to the government, National
Association of Software and Services Companies (Nasscom) has reiterated its
Ndemand to retain the complete tax exemption under section 10A or 10B to the
industry.
Contd...

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