RRW Limited registered during the financial year in special economic zones (SEZ), providing services. During the financial year 2024-25, following information was provided by the company: Particulars Amount (in crore) Ex

As per the provision of Section 10AA of the Income Tax Act, 1961, in computing the total income of an assessee, being an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005), from his Unit, who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006, but before the first day of April, 2021, the following deduction shall be allowed: 100% of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and 50% of such profits and gains for further five assessment years and thereafter. Since, it is mentioned in the question that RR Ltd. is registered during the financial year in special economic zone (SEZ), i.e. registered during the current financial year i.e. 2024-25 and therefore deduction u/s 10AA is not available. Alternate Answer 6A (ii) RRW Limited is eligible to claim a 100% deduction of export of service as per section 10AA provided unit starts manufacture or produce articles or things or provide any service upto PY 2019-20. As per section 10AA (7), the profit derived from the export of articles or things or services shall be the amount which bears to the profits of the business of the undertaking, being the Unit, the same proportion as the export turnover in respect of articles or things or services bears to the total turnover of the business carried on by the undertaking. The amount of deduction under section 10AA: = Profits of Unit in SEZ x Export turnover of Unit / Total turnover of Unit SEZ = 48 crore x 180 crore / 300 crore The amount of deduction will be ₹28.80 crores. RRW Limited can claim a deduction for ₹28.80 crores. Note: It is assumed that the Previous Year 2024-25 is within first 5 years of being set up of the SEZ Unit and therefore, deduction under section 10AA is allowed to the extent of 100% of the profits of SEZ as attributable to the exports.