Income Tax – conditions for infrastructure facility
If you thought excise notifications were confusing, look at this. As per Section 36 of the Income Tax Act, there is a deduction for certain infrastructure facilities. Now how does one qualify for this? It is eligible if
(a) it is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act;
(b) it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i ) developing or ( ii ) operating and maintaining or ( iii ) developing, operating and maintaining a new infrastructure facility similar in nature to an infrastructure facility referred to in the Explanation to clause ( i ) of sub-section (4) of section 80-IA;
(c) it has started or starts operating and maintaining such infrastructure facility on or after the 1 st of April, 1995.
Now how does one know what is similar to the facility referred in Section 80 IA? What is referred there is:-
For the purposes of this clause, infrastructure facility means
(a) a road including toll road, a bridge or a rail system;
(b) a highway project including housing or other activities being an integral part of the highway project;
(c) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system;
(d) a port, airport, inland waterway or inland port;
Is it really necessary to make our laws so complicated?
NOTIFICATION NO. , Dated: July 20,2006