Ministry of Finance 

15.02.2016

Direct Taxation

Clarification of 'initial assessment year' in Section 80IA (5) of the IT Act

MANU/DTCR/0002/2016

The Central Board of Direct Taxes issued a clarification to the ‘initial assessment year’ for the purposes of Section 80IA(5) of the Income Tax Act, 1961. The term will mean the first year in which an assessee claims deduction under Section 80IA of the Act, 1961. CBDT’s explanation puts paid to an interpretation by some assessing officers that the ‘initial assessment year’ was the year in which the eligible business or manufacturing activity of the assessee commenced.

Tags : Income tax initial assessment year deduction claim

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