Amendment of the Income-tax Rules under section 80 of the Income-tax Act, 1961
Notification No. 281 was published on 27 November 2007. Its subject is Amendment of the Income-tax Rules under section 80 of the Income-tax Act, 1961.
This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.
By the Income-tax (Fifteenth Amendment) Rules, 2007, made under section 295 read with clause (iv) of sub-section (3) and clause (a) of sub-section (6) of section 80-ID of the Income-tax Act, 1961, the Central Board of Direct Taxes inserts new rule 18DE in the Income-tax Rules, 1962 after rule 18DD, and inserts Form No. 10CCBBA in Appendix-II after Form 10CCBB. Rule 18DE prescribes, for clause (a) of sub-section (6) of section 80-ID, the area, seating capacity, number of convention halls, facilities and amenities a convention centre must have: for the specified area of the National Capital Territory of Delhi, Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad, a minimum covered plinth area of 25,000 square metres, a minimum seating capacity of 3,000 and a minimum of ten convention halls. Each hall must be equipped with a modern public address system, a slide and power point projection system and an LCD projector or video screening facility; the centre must have a documentation centre with computers and printers, telephone with STD and ISD facilities, e-mail, photocopy and scanning facility with trained operators, must be completely centrally air-conditioned, and must have adequate parking and public conveniences and comply with local building regulations on fire and safety. It may in addition have an amphitheatre and landscaped open spaces, and a kitchen, dining facility, cafeteria or restaurant only to support events in the centre. For clause (iv) of sub-section (3) of section 80-ID, the audit report is prescribed in Form No. 10CCBBA.
NOTIFICATION NO. 281/2007, DATED 27-11-2007
In exercise of the powers conferred by section 295 read with clause ( iv) of sub-section (3) and clause (a) of sub-section (6) of section 80-ID of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Fifteenth Amendment) Rules, 2007.
(2) They shall come into force with effect from the 1st day of April, 2008.
2. In the Income-tax Rules, 1962, after rule 18DD, the following rule shall be inserted, namely:-
"Prescribed area, minimum seating capacity, facilities and amenities for convention centres; minimum number of convention halls in the convention centres; and particulars of audit report, for deduction under section 80-ID.
18DE. (1) For the purposes of clause (a) of sub-section (6) of section 80-ID, the convention centre shall have the following area, facilities and amenities,—
(a) A convention centre located in the specified area mentioned in column (1) of the Table below, shall have a minimum covered plinth area mentioned in column (2), minimum seating capacity mentioned in column (3) and minimum number of convention halls, for the purpose of holding conferences and seminars, mentioned in column (4) of the said table.Table
Specified area
Minimum covered plinth area (in sq. mtrs.)
Minimum seating capacity
Minimum number of convention halls
(1)
(2)
(3)
(4)
National Capital Territory of Delhi, Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad
25000
3000
10
(b) The convention centre shall have convention halls, whether called conference halls or seminar halls or auditorium or by any other name, for holding seminars and conferences.
(c) Each convention hall of the convention centre shall be equipped with modern public address system, slide and power point projection system and LCD projector or Video screening facility.
(d) The convention centre shall have a documentation centre with computers and printers, telephone with STD/ISD facilities, E-mail, photocopy and scanning facility along with trained operators to provide these facilities.
(e) The convention centre shall be completely centrally air-conditioned.
(f) The convention centre shall have adequate parking facility and other public conveniences as per the local building regulations and should also fulfil all local building regulations in respect of fire and safety.
(2) In addition to the facilities mentioned in sub-rule (1), the convention centres may have,—an amphitheatre and landscaped open spaces for outdoor conference or seminar related activities;
a kitchen, dining facility, cafeteria or restaurant only to support events in the convention centre.
(3) For the purposes of clause (iv ) of sub-section (3) of section 80-ID, the report of an audit shall be in Form No. 10CCBBA."
3. In Appendix-II, after Form 10CCBB, the following Form shall be inserted, namely: -
"FORM NO. 10CCBBA
[See rule 18DE]1.
Name of the assessee
:
2.
PAN
:
3.
Status
:
4.
Share in the ownership of the convention centre or hotel
:
(a)
Fully owned or partly owned [Encircle whichever is applicable]
(b)
If partly owned, please specify the percentage of ownership
:
5.
Name and address of the convention centre or hotel
:
6.
Date of commencement of operation by the convention centre or hotel:____________________________
7.
Initial assessment year:________________________
8.
Approval from the town planning authority or Municipal Corporation under the town planning or Municipal Corporation regulation:
(a)
Received or not received
(b)
If received, please attach a copy of such approval and also fill out the following details:
Approval
Issuing authority
Approval/completion/occupation date and number
1. Permission for construction of the convention centre or hotel
2. Completion or occupation certificate
9.
Technical details of the convention centre (not applicable in case of hotel):
(a)
Total covered plinth area (in square metres)
:
(b)
Number of convention halls
:
(c)
Seating capacity of the convention centre
:
(d)
Technical specification of the convention centre
:
(i)
All the convention halls have a modern public address system: Yes/No [Encircle whichever is applicable]
(ii)
All the convention halls have slide and power point projection system: Yes/No [Encircle whichever is applicable]
(iii)
All the convention halls have LCD Projector or Video screening facility: Yes/No [Encircle whichever is applicable]
(iv)
Whether the convention centre has a documentation centre: Yes/No [Encircle whichever is applicable]
(v)
The documentation centre has facilities for printing, faxing, photocopying, scanning, internet surfing along with trained personnel to assist the users: Yes/No [Encircle whichever is applicable]
(vi)
The convention centre is centrally air-conditioned: Yes/No [Encircle whichever is applicable]
(vii)
The convention centre has adequate parking facilities and other public conveniences as per local building regulations: Yes/No [Encircle whichever is applicable]
(viii)
The convention centre fulfils the local building regulations in respect of fire and safety: Yes/No [Encircle whichever is applicable]
(ix)
(a) The convention centre has an amphitheatre: Yes/No [Encircle whichever is applicable]
(ix)
(b) The convention centre has landscaped open space: Yes/No [Encircle whichever is applicable]
(ix)
(c) If the answer to (a) or (b) or both is yes, please specify the purpose for which the same is used:
(x)
(a) The convention centre has kitchen facility or restaurant: Yes/No [Encircle whichever is applicable]
(x)
(b) If yes, whether the same is used only to support events in the convention centre: Yes/No [Encircle whichever is applicable]
10.
Details relating to computation of deduction:
(a)
Number of conferences or seminars held (not applicable in case of hotel):_____________________________
(b)
Receipts from convention centre or hotel (amount in rupees):
(c)
Other receipts (amount in rupees]:_________________________________-
(d)
Profit derived from the business of hotel or the business of building, owning and operating of a convention centre (amount in rupees]:________________________________________
(e)
Deduction under section 80-ID (amount in rupees):__________________________-
Declaration
I/We have examined the balance sheet of the above convention centre/hotel styled ________________________________ and belonging to the assessee M/s._______________________________________________________ (Permanent Account No: ______________) as at __________ and the profit and loss account of the said convention centre/hotel for the year ended on that date which are in agreement with the books of account maintained at the head office at ________________ and branches at _______________________.I/We have obtained all the information and explanations which to the best of my/our knowledge and belief were necessary for the purposes of the audit. In my/our opinion, proper books of account have been kept by the head office and the branches of the convention centre/hotel aforesaid visited by me/us so far, as appears from my/our examination of books, and proper returns adequate for the purposes of audit have been received from branches not visited by me/us, subject to the comments given below:
________________________________________________________________________________________________________________________________________________________________________________________________________________________
In my/our opinion, the convention centre/hotel satisfies the conditions stipulated in section 80-ID and the amount of deduction claimed under this section is as per the provisions of the Income-tax Act, and
In my/our opinion and to the best of my/our information and according to explanations given to me/us, the said accounts give a true and fair view,-
(i) in the case of the balance sheet, of the state of affairs of the above named convention centre/hotel as at_________________ , and
(ii) in the case of the profit and loss account, of the profit or loss of the convention centre/hotel for the accounting year ending on __________________.
Place________
Date_________Signed
Accountant"
[F.No.142/22/2007-TPL]EXPLANATORY MEMORANDUM
The Finance Act, 2007 inserted a new section 80-ID in the Income-tax Act, 1961 to provide for a 100% deduction of the profits and gains derived by an undertaking from the business of operating a hotel or from the business of building, owning and operating a convention centre subject to the conditions prescribed therein.
Clause (iv) of sub-section (3) of section 80-ID of the said Act lays down that the assessee shall furnish a report of audit in the prescribed form, and duly signed by an accountant, certifying that the deduction has been correctly claimed. Clause (a) of sub-section (6) of section 80-ID of the said Act defines a 'convention centre' as a building of prescribed area and having such other facilities as may be prescribed. Accordingly, a new rule 18DE and a new form 10CCBBA have been inserted in the Income-tax Rules for this purpose.
The new rule 18DE and the new form 10CCBBA will take effect from the 1st day of April, 2008 and will, accordingly, apply in relation to the assessment year 2008-2009 and subsequent years.
| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 18DE | no counterpart recorded |
| Rule 18DD | no counterpart recorded |
Forms it touches. Form No. 10CCBBA, Form No. 10CCBB
1 April 2008.
In the return claiming deduction under section 80-ID for a convention centre or hotel, and in the audit report in Form No. 10CCBBA filed with it.
Forms it names. Form No. 10CCBB
Rules it names. Rule 18DD, 18DE of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.