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Unit 6: Deductions: For Special Conditions

6.8 Review Questions Notes

1. What do you understand by an infrastructure facility?
2. In order to be referred to as infrastructure facility what all conditions are to be fulfilled by
an organisation?
3. Define SEZ.
4. Explain the deductions available to power undertakings.

5. Write a note on deductions available to undertakings for reconstruction or revival of
power generating plants.
6. Differentiate between a developer and a co-developer in context with calming deductions
relating SEZ.
7. Explain the Deduction available in respect of profits and gains by an undertaking or
enterprise engaged in development of SEZ.

8. Comment on the statement, “Section 80-IC allows tax holiday to the new undertakings or
existing undertakings on their substantial expansion in the states of Himachal Pradesh,
Uttaranchal, Sikkim and North-Eastern States”.
9. Define the following in context with Section 80-IE of Income Tax Act:
(a) Eligible article or thing
(b) Substantial expansion

(c) Eligible business
10. Mention the conditions that are needed to be fulfilled by the undertaking for claiming
benefit of deduction under Section 80-IE of Income Tax Act.

11. Mention the application criteria for taking the benefits of deductions available under
special conditions of IT Act.

Answers: Self Assessment

1. True 2. True

3. False 4. False
5. True 6. Ten
7. Person who, or State Government 8. Section 3(12)
9. Return of income. 10. Profits

11. Section 80-IC 12. 25%
13. 100% 14. True
15. False 16. False
17. True 18. SEZ

19. 1 April 2005 20. Thirteenth Schedule
21. North-Eastern States

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