07 March 2012
Kindly provide any material, case law, Circular, Notification with regard to exemption u/s 80-IB (11C) for exemption to new 100 beded hospital.
08 March 2012
Extract from ICAI Direct Tax Study Material for Final - (10) Undertakings operating and maintaining a hospital located anywhere in India, other than the excluded area [Sub-section (11C)] (i) Sub-section (11C) provides a five year tax holiday to hospitals set up in other than the excluded areas. Excluded area means the area comprising the urban agglomerations of Greater Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore and Ahmedabad, the districts of Faridabad, Gurgaon, Ghaziabad, Gautam Budh Nagar and Gandhi Nagar and the city of Secunderabad. (ii) To be eligible for this benefit, the hospital should be constructed and should start functioning between 1.4.08 to 31.3.2013. Further, it should have at least 100 beds for patients. For claiming this benefit, it is necessary that the audit report signed and verified by a Chartered Accountant certifying that deduction has been correctly claimed should be filed along with the company’s return of income. (iii) The construction of the hospital should be in accordance with the regulations or bye-laws of the local authority. The hospital shall be deemed to have been constructed on the date on which a completion certificate in respect of such construction is issued by the local authority concerned.
08 March 2012
Extract from Income Tax Act, 2010 - 73[(11C) The amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital located anywhere in India, other than the excluded area, shall be hundred per cent of the profits and gains derived from such business for a period of five consecutive assessment years, beginning with the initial assessment year, if— (i) the hospital is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013; (ii) the hospital has at least one hundred beds for patients; (iii) the construction of the hospital is in accordance with the regulations or bye-laws of the local authority; and (iv) the assessee furnishes along with the return of income, a report of audit in such form and containing such particulars, as may be prescribed74, and duly signed and verified by an accountant, as defined in the Explanation to sub-section (2) of section 288, certifying that the deduction has been correctly claimed. Explanation.—For the purposes of this sub-section— (a) a hospital shall be deemed to have been constructed on the date on which a completion certificate in respect of such construction is issued by the local authority concerned; (b) “initial assessment year” means the assessment year relevant to the previous year in which the business of the hospital starts functioning; (c) “excluded area” shall mean an area comprising— (i) Greater Mumbai urban agglomeration; (ii) Delhi urban agglomeration; (iii) Kolkata urban agglomeration; (iv) Chennai urban agglomeration; (v) Hyderabad urban agglomeration; (vi) Bangalore urban agglomeration; (vii) Ahmedabad urban agglomeration; 72. See rule 18DD and Form No. 10CCBC. Rule 12 provides that the return of income shall not be accompanied by any document or copy of any account or form or report of audit required to be attached with return of income under any of the provisions of the Act. 73. Inserted by the Finance Act, 2008, w.e.f. 1-4-2009. 74. See rule 18DDA and Form No. 10CCBD. Rule 12 provides that the return of income shall not be accompanied by any document or copy of any account or form or report of audit required to be attached with return of income under any of the provisions of the Act.
(viii) District of Faridabad; (ix) District of Gurgaon; (x) District of Gautam Budh Nagar; (xi) District of Ghaziabad; (xii) District of Gandhinagar; and (xiii) City of Secunderabad; (d) the area comprising an urban agglomeration shall be the area included in such urban agglomeration on the basis of the 2001 census.]
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