Income Tax Deduction Under Section 80A

Deductions to be made in computing Total Income Under Section 80A
(1) In computing the total income of an assessee, there shall be allowed from his gross total income in accordance with and subject to the provisions of the said Chapter, the deductions specified in Sections 80C to 80U.
(2) The aggregate amount of deductions under this Chapter shall not, in any case, exceed the gross total income of the Assessee.
(3) Where, in computing the total income of an AOPs or BOIs, any deduction is admissible under sections 80G or 80GGA [or 80GGC]  or 80HH or 80HHA or 80HHB or 80HHC or 80-I or 80-IA or 80-J or 80JJ, no deduction under the same section shall be made in computing the total income of a member of the association of persons or body of individuals in relation to the share of such member in the income of the association of persons or body of individuals.
(4) Deductions in respect of profits and gains shall not be allowed under any provisions of section 10A, 10AA, 10B, 10BA. In the case of an assessee, any amount of profits and gains of an undertaking or unit or enterprise or eligible business is claimed and allowed as a deduction under any of those provision for any Assessment year, deduction in respect of, and to the extent of such profits and gains shall not be allowed under any other provision of this Act for such assessment year and shall in no case exceed the profits and gains of such undertaking or unit or eligible business, as the case may be.

(5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or Section 10AA or Section 10B or Section 10BA or under any provision of this Chapter under the heading ‘C-Deduction in respect of certain incomes’ no deduction shall be allowed to him.
(6) Unit transfer at market price- For claiming deduction u/s 10A, any goods or services held for the undertaking or units are transferred to any other unit then the assessee shall be determined at the market value of such goods or services as on that date.
Market Value Means:-
(i) In relation to any goods or services sold or supplied, means the price that such goods or services would fetch if these were sold by the undertaking or unit or enterprises or eligible business in the open market, subject to statutory or regulatory restrictions, if any.
(ii) In relation to any goods or services acquired, means the price that such goods or services would cost if these were acquired by the undertaking or unit or enterprise or eligible business from the open market, subject to statutory or regulatory restrictions, if any.
(iii) In relation to any goods or services sold, supplied or acquired means the arm’s length price as applied in a transaction between persons other than associated enterprises of such goods or services, if it is a specified domestic transaction is the aggregate of such transaction between related parties in any previous year exceeds Rs. 5 Crores [w.e.f. A. Y. 2013-14].

(7) Where a deduction under any provisions of section 80HH to 80ABB is claimed and allowed in respect of profit of any of the specified business referred to in section 35AD(8)(c). For any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessment year (applicable from A. Y. 2011-2012).
RECOMMENDED READ  Section 80U

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