As per the Income-tax Act,1961 deduction to unit set up in SEZ during April 1,2002 to 31st March, 2005 will be available u/s 10A for first 10 years and then u/s 10AA for the balance 5 years.
My question is that suppose an undertaking starts begins or start production on previous year starting on April 1, 2002 then
For AY 03-04 to 07-08 : It will get deduction of 100% profit
For AY 08-09 & 09-10 : It will get deduction of 50% profit
For AY 10-11 to 12-13 : least of 50% profits or amount credited to Re investment Allowance Reserve Account
For AY 13-14 to 18-19 : least of 50% profits or amount credited to Special Economic Zone Re investment Reserve Account
My question is that whether the amount should be credited to the reservce in AY 10-11 to 12-13 or just in AY 13-14 to 18-19 as these will be the last years of deduction available to the unit and the owner will have to create the reserve in many years.
Has CBDT issued any circular or any notification thereby withdrawing the condition to credit the amount in Reinvestment Reserve account and crediting only in SEZ Re investment Reserve account in the final 5 years of deduction.
CAclubindia
