INCOME TAX

Clarification regarding deductions u/s 80HH & 80I

INSTRUCTION NO. 4/2001

 Dated: August 14, 2001

It has come to the notice of the Board that a question has been raised regarding the manner in which deductions u/s 80HH and u/s 801 of the Income-tax Act, 1961 are to be allowed. The major issue is as to whether deduction u/s 801 of the Act would be given independently on gross total income or on the total income as reduced by the deduction u/s 80HH of the Act.

2. The issue has been examined in the Board. Lt has been decided that the deduction u/s 80HH and u/s 80I of the Income-tax Act, 1961 shall be given independently with reference to the gross total income.

3. This may kindly be brought to the notice of all officers working under your charge.

[F.No. 178/56/93-ITA.I.

(B.L. Sahu)
Officer on Special Duty (ITA.I)