Section 80-IC
Income tax deduction of 100 percent (first 5 years) and 25 percent (next 5 years) for eligible manufacturing and production units in specified states including Himachal Pradesh, Uttarakhand, and North-East.
Regulator
Central Board of Direct Taxes (CBDT)
Deadline
Event-triggered
Penalty
Procedural only
Legal basis
Income Tax Act, 1961
What is Section 80-IC?
Income tax deduction of 100 percent (first 5 years) and 25 percent (next 5 years) for eligible manufacturing and production units in specified states including Himachal Pradesh, Uttarakhand, and North-East.
- +Manufacturing units set up in Himachal Pradesh, Uttarakhand, Sikkim, or North-Eastern states
- +Unit must be established and commence production within specified dates
- +MAT continues to apply despite the Section 80-IC deduction
Statutory basis
Income Tax Act, 1961
Section 80-IC
Enforced by
Central Board of Direct Taxes (CBDT)
Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.
The stake
Compliance exposure for Section 80-IC. Skipping or mishandling this compliance carries direct financial and operational consequences.
Why Section 80-IC matters for your GCC
Section 80-IC is a income tax and withholding requirement for foreign-owned Indian entities and GCCs. Although Section 80-IC is not bound by a single hard deadline, sustained compliance is monitored by Central Board of Direct Taxes (CBDT), and missed obligations compound across audit and assessment cycles. Most foreign parents discover Section 80-IC issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.
The 4 ways Section 80-IC goes wrong
Real scenarios from real GCC compliance audits. Each one preventable.
Trap 01
Computing Section 80-IC on incorrect wage base or taxable transaction value
Trap 02
Missing the statutory remittance deadline and incurring interest under Section 201(1A)
Trap 03
Submitting incorrect deductee PAN, resulting in TDS credit not reflecting in employee Form 26AS
Trap 04
Failing to file the quarterly statement on time, attracting Section 234E late fee
Done for you
Accounting and Tax
IRPR Network handles Section 80-IC as part of our Accounting and Tax service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.
Our workflow
- 01Identify the trigger event in your GCC operations
- 02Prepare and validate the Section 80-IC filing or compliance step
- 03Submit to the regulator and obtain acknowledgement
- 04Track in your compliance calendar for ongoing or recurring obligations
Concepts connected to Section 80-IC
These terms are filed together, depend on each other, or share regulatory authority.
Income Tax and TDS
Section 10AA
Income tax deduction for units in Special Economic Zones on export profits: 100 percent for first 5 years, 50 percent for next 5 years, and 50 percent for a further 5 years subject to transfer to SEZ Reinvestment Reserve.
Incentives and Zones
SEZ
Designated zones in India providing tax incentives and procedural concessions to export-oriented units.
Income Tax and TDS
MAT
Tax computed at 15 percent of book profits, applicable when normal income tax payable is lower than MAT.
Asked about Section 80-IC
3 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.
Need help with Section 80-IC?
IRPR Network manages Section 80-IC as part of Accounting and Tax, with a zero-penalty guarantee.
Explore the serviceQ01What is Section 80-IC and who does it apply to?
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Income tax deduction of 100 percent (first 5 years) and 25 percent (next 5 years) for eligible manufacturing and production units in specified states including Himachal Pradesh, Uttarakhand, and North-East. For foreign-owned GCCs, Section 80-IC applies to manufacturing units set up in himachal pradesh, uttarakhand, sikkim, or north-eastern states. IRPR Network handles Section 80-IC as part of our Accounting and Tax service.
Q02What law governs Section 80-IC?
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Section 80-IC is governed by Income Tax Act, 1961, specifically Section 80-IC. The compliance is enforced by Central Board of Direct Taxes (CBDT).
Q03Who handles Section 80-IC for foreign-owned GCCs in India?
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IRPR Network handles Section 80-IC end-to-end as part of our Accounting and Tax service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.
Handle Section 80-IC the right way, the first time.
Book a 30-minute consultation. We will map your Section 80-IC obligations alongside every other India compliance for your GCC, on one calendar, one retainer.
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