Section 80-IA(1)

Section 80-IA(1) — the law in short

What the courts have decided on section 80-IA(1), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CIT v Reliance Energy Ltd Supreme CourtHelps taxpayer
  My section 80-IA deduction is larger than my business income. Can I set it against my other income too, or only against business income?
  Against gross total income, subject to the Chapter VI-A ceiling. The Supreme Court held that section 80AB deals only with computing the deduction on net income and cannot be read as curtailing the width of section 80-IA. Section 80-IA(5) is confined to determining the quantum of the deduction by treating the eligible business as the only source of income; it cannot be pressed into service to read a limitation confining the deduction under sub-section (1) to business income. Section 80A(1) allows the Chapter VI-A deductions from gross total income and section 80A(2) caps the aggregate at gross total income. The Revenue's appeals were dismissed on this issue.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.