Deduction in respect of certain income of Offshore Banking Units and International Financial Services Centre [Section 80LA] :
(i) This section is applicable to the following assessees –
(a) a scheduled bank having an Offshore Banking Unit in a SEZ; or
(b) any bank, incorporated by or under the laws of a country outside India, and having an Offshore Banking Unit in a SEZ; or
(c) a Unit of an International Financial Services Centre (IFSC).
(ii) The deduction will be allowed on account of the following income included in the gross total income of such assessees –
(a) income from an Offshore Banking Unit in a SEZ; or
(b) income from the business referred to in section 6(1) of the Banking Regulation Act, 1949, with –
(1) an undertaking located in a SEZ or
(2) any other undertaking which develops, develops and operates or develops, operates and maintains a SEZ; or
(c) income from any Unit of the IFSC from its business for which it has been approved for setting up in such a Centre in a SEZ.
(iii) The deduction allowable from such income is –
(a) 100% of such income for 5 consecutive assessment years beginning with the assessment year relevant to the previous year in which –
(1) the permission under section 23(1)(a) of the Banking Regulation Act, 1949 was obtained; or
(2) the permission or registration under the SEBI Act, 1992 was obtained; or
(3) the permission or registration under any other relevant law was obtained.
(b) Thereafter, 50% of such income for the next 5 consecutive assessment years.
(iv) The following conditions have to be fulfilled for claiming deduction under this section –
(a) The report of a Chartered Accountant in the prescribed form certifying that the deduction has been correctly claimed in accordance with the provisions of this section, should be submitted along with the return of income.
(b) A copy of the permission obtained under section 23(1)(a) of the Banking Regulation Act, 1949 should also be furnished along with the return of income.