INCOME TAX

Deduction under section 80Q of the Income-tax Act, 1961.

Circular No. 706

Dated 26/6/1995

Section 80Q inserted by the Finance (No. 2) Act, 1991, with effect from 01-04-1992 provides that where in the case of an assessee the gross total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1992, or to any one of the four assessment years next following that assessment year, includes any profits and gains derived from a business carried on in India of printing and publication of books or publication of books, a deduction from such profits and gains of an amount equal to 20 per cent. thereof shall be allowed.

(2) The Board has received representations from various publishers and book-sellers' associations/federations seeking clarifications as to the number of years the deduction under section 80Q would be available.

(3) Explanatory notes on the Finance (No. 2) Act, 1991, 38.21 reads as under :_

". . . Keeping in view of the vital role of the publishing industry in the development of human resources, a new section 80Q has been inserted in the Income-tax Act to revive the aforesaid tax concession for five years commencing with the assessment year 1992-93."

(4) It is hereby clarified that deduction under section 80Q of the Income-tax Act, 1961, is to be allowed for five years commencing from the assessment year 1992-93 provided the other conditions mentioned in the section are satisfied.

(Sd.) Keshav Dev Ranjan,

Secretary,

Central Board of Direct Taxes.