NOTIFICATION NO. 281/2007, DATED 27-11-2007

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.