Budget 2010-11: Deduction of profits of a hotel or a convention centre in the National Capital Territory

Feb 28, 2010

Section 80-ID of the Income-tax Act provides for 100 per cent
 deduction for five years, of profits derived by an undertaking
 from the business of a two-star, three-star or four-star category
 hotel or from the business of building, owning and operating a
convention centre located in the National Capital Territory of
Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar
 and Ghaziabad, provided such hotel has started functioning or
such convention centre is constructed during the period 1.4.2007
to 31 .3.2010.

To provide some more time for these facilities to be set up in
light of the Commonwealth Games in October, 2010, it is proposed
 to amend clauses (i) and (ii) of section 80-ID to extend the
date by which the hotel has to start functioning or the convention
centre has to be constructed, from the
present 31st March, 2010 to 31st July, 2010.

This amendment is proposed to take effect from 1st April, 2011 and will,
accordingly, apply in relation to the assessment year 2011-12 and
subsequent years.