Section 10AA → Section 14
Special provisions in respect of newly established Units in SEZ
Quick Answer
Section 10AA of the Income Tax Act, 1961 (Special provisions in respect of newly established Units in SEZ) corresponds to Section 14 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 10AA
Under the Income Tax Act, 1961, Section 10AA governs special provisions in respect of newly established units in SEZ. Provides a 15-year phased tax holiday for units manufacturing goods or providing services in a Special Economic Zone.
From 1st April 2026, the same subject sits at Section 14 of the Income-tax Act, 2025 — retained and renumbered as Section 14 of the Income-tax Act, 2025. Retained as a sunset provision. Only units established before the sunset date can claim the remaining years of deduction.
For Section 10AA, the practical impact is rated Medium. Sunsetting incentive, replaced by PLI schemes.
Sec 10AA
Provision Summary
Provides a 15-year phased tax holiday for units manufacturing goods or providing services in a Special Economic Zone.
Sec 14
Provision Summary
Retained as a sunset provision. Only units established before the sunset date can claim the remaining years of deduction.
Key Changes & Highlights
- Strict linking with foreign exchange realization timelines.
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Frequently Asked Questions
What is Section 10AA of the Income Tax Act, 1961 about?
Section 10AA of the Income Tax Act, 1961 covers special provisions in respect of newly established units in SEZ. Provides a 15-year phased tax holiday for units manufacturing goods or providing services in a Special Economic Zone.
Which section replaces Section 10AA in the Income-tax Act, 2025?
Section 10AA of the Income Tax Act, 1961 maps to Section 14 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained as a sunset provision. Only units established before the sunset date can claim the remaining years of deduction.
What is the impact of the change to Section 10AA under the new tax code?
The transition impact for Section 10AA is rated Medium. Sunsetting incentive, replaced by PLI schemes.
What should I watch out for when Section 10AA moves to the 2025 code?
Strict linking with foreign exchange realization timelines. These points are specific to Section 10AA (Special provisions in respect of newly established Units in SEZ).
Disclaimer: This mapping of Section 10AA (Special provisions in respect of newly established Units in SEZ) to Section 14 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 10AA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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