Section 80-ID — Hotels in NCR - Specified Districts

STATUTORY ARCHITECTURE — 18-ROW MAP

Statutory text — Income-tax Act, 1961

Deduction in respect of profits and gains from business of hotels and convention centres in specified area.

80-ID. (1) Where the gross total income of an assessee includes any profits and gains derived by an

undertaking from any business referred to in sub-section (2) (such business being hereinafter referred to as

the eligible business), there shall, in accordance with and subject to the provisions of this section, be

allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent

of the profits and gains derived from such business for five consecutive assessment years beginning from the

initial assessment year.

(2) This section applies to any undertaking,—

(i) engaged in the business of hotel located in the specified area, if such hotel is constructed and has

started or starts functioning at any time during the period beginning on the 1st day of April, 2007

and ending on the 31st day of July, 2010; or

(ii) engaged in the business of building, owning and operating a convention centre, located in the

specified area, if such convention centre is constructed at any time during the period beginning on

the 1st day of April, 2007 and ending on the 31st day of July, 2010; or

(iii) engaged in the business of hotel located in the specified district having a World Heritage Site, if

such hotel is constructed and has started or starts functioning at any time during the period

beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.

(3) The deduction under sub-section (1) shall be available only if—

(i) the eligible business is not formed by the splitting up, or the reconstruction, of a business already in

existence;

(ii) the eligible business is not formed by the transfer to a new business of a building previously used as

a hotel or a convention centre, as the case may be;

(iii) the eligible business is not formed by the transfer to a new business of machinery or plant

previously used for any purpose.

Explanation.—The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall

apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii)

of that sub-section;

(iv) the assessee furnishes along with the return of income, the report of an audit in such form and

containing such particulars as may be prescribed, and duly signed and verified by an accountant, as

defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has

been correctly claimed.

(4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of

the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or section

10AA, in relation to the profits and gains of the undertaking.

(5) The provisions contained in sub-section (5) and sub-sections (8) to (11) of section 80-IA shall, so far as

may be, apply to the eligible business under this section.

(6) For the purposes of this section,—

(a) "convention centre" means a building of a prescribed area comprising of convention halls to be

used for the purpose of holding conferences and seminars, being of such size and number and

having such other facilities and amenities, as may be prescribed;

(b) "hotel" means a hotel of two-star, three-star or four-star category as classified by the Central

Government;

(c) "initial assessment year"—

(i) in the case of a hotel, means the assessment year relevant to the previous year in which the

business of the hotel starts functioning;

(ii) in the case of a convention centre, means the assessment year relevant to the previous

year in which the convention centre starts operating on a commercial basis;

(d) "specified area" means the National Capital Territory of Delhi and the districts of Faridabad,

Gurgaon, Gautam Budh Nagar and Ghaziabad;

(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the

Table below, of the States, specified in the corresponding entry in column (3) of the said Table:

TABLE

S. No. Name of district Name of State

(1) (2) (3)

1. Agra Uttar Pradesh

2. Jalgaon Maharashtra

3. Aurangabad Maharashtra

4. Kancheepuram Tamil Nadu

5. Puri Orissa

6. Bharatpur Rajasthan

7. Chhatarpur Madhya

Pradesh

8. Thanjavur Tamil Nadu

9. Bellary Karnataka

10. South 24 Parganas (excluding areas falling within the Kolkata West Bengal

urban agglomeration on the basis of the 2001 census)

11. Chamoli Uttarakhand

12. Raisen Madhya

Pradesh

13. Gaya Bihar

14. Bhopal Madhya

Pradesh

15. Panchmahal Gujarat

16. Kamrup Assam

17. Goalpara Assam

18. Nagaon Assam

19. North Goa Goa

20. South Goa Goa

21. Darjeeling West Bengal

22. Nilgiri Tamil Nadu.

Function in the statutory architecture

Section 80-ID allowed one hundred per cent of the profits and gains of an eligible business for five consecutive assessment years from the initial assessment year. Eligible businesses were a hotel in the specified area, constructed and starting to function between 1 April 2007 and 31 July 2010; a convention centre in the specified area constructed in the same period; and a hotel in a specified district having a World Heritage Site, constructed and starting to function between 1 April 2008 and 31 March 2013. The specified area is the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad; the World Heritage districts are listed in a table of twenty-two districts. A "hotel" is one of two-star, three-star or four-star category.

Operative consequences

The business must not be formed by splitting up or reconstruction, or by transfer of a building previously used as a hotel or convention centre, or of used plant and machinery.
An audit report in the prescribed form, certified by an accountant, had to accompany the return.
No deduction under any other section of Chapter VI-A or under s. 10AA is allowed on the same profits (s. 80-ID(4)).

Status

Expired. There is no bracketed note of omission, but the latest window closed on 31 March 2013 and the deduction runs for five years, so it does not reach assessment year 2026-27. The Finance Act, 2026 does not amend s. 80-ID.

The Income-tax Act, 1961 governs assessment year 2026-27 and earlier years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject, there is no corresponding provision.

Case Laws & Commentary

SECTION 80-ID — DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM BUSINESS OF HOTELS AND CONVENTION CENTRES IN SPECIFIED AREA

Case Laws & Commentary (Income-tax Act, 1961 as amended by Finance Act, 2026)

STATUTORY SCHEME (editorial summary — verbatim bare-Act text in the companion Block-1 file)

Marginal heading: Deduction in respect of profits and gains from business of hotels and convention centres in specified area.

Section 80-ID allowed a deduction of 100 per cent of the profits and gains derived from the business of a hotel (of the prescribed category) or a convention centre, constructed and beginning to operate within specified windows in the National Capital Territory of Delhi and adjoining districts (and certain specified districts having a World Heritage Site), for five consecutive assessment years. The provision was tied to the Commonwealth Games, 2010 era and is spent.

A. SECTION COMMENTARY

A.1 Structural position

Section 80-ID was a location- and time-specific hotel / convention-centre incentive associated with the Commonwealth Games, 2010 and with tourism around World Heritage Sites. It is spent.

A.2 Provision taxonomy

A 100-per-cent, five-year deduction for a qualifying hotel / convention centre in the specified areas within the specified construction-and-operation windows, with the section 80-IA machinery.

A.3 Core doctrinal themes

Eligibility (location, hotel category, construction-and-operation window) and the 'derived from' nexus; little reported litigation given the narrow, time-bound scope.

A.4 Legislative evolution / FA amendment trail

Inserted by the Finance Act, 2007; tied to the specified windows (the latest of which has lapsed) and now spent. Not amended by the Finance Act, 2026.

A.5 CA practitioner pointers

(1) Confirm the location, hotel category and the construction-and-operation window. (2) Apply the 'derived from' nexus and the section 80-IA machinery. (3) Relevant only for open legacy assessments.

B. FA 2026 IMPACT NOTE

Section 80-ID is NOT amended by the Finance Act, 2026 and is spent.

C. CASE LAW — CLUSTERED BY ISSUE

Cluster C-1 : Narrow, time-bound incentive

Statutory conditions and shared nexus jurisprudence

Facts: A hotel / convention centre in the specified area within the specified window claims the deduction.

Issue: What governs eligibility and quantum.

Held: Eligibility turns on the location, category and construction-and-operation window; quantum follows the 'derived from' nexus and the section 80-IA machinery.

Ratio: A narrow, time-bound conditional deduction governed by the general profit-linked principles.

Relevance: Recorded for completeness; reported litigation is negligible and the section 80-IA authorities supply the framework.

Editorial note on sourcing

Editorial scheme summary prepared from the Income-tax Act, 1961 as amended by the Finance Act, 2025, read with the Finance Act, 2026; verbatim bare-Act text is carried in the companion Block-1 treatise file. Digested authorities are reported Supreme Court / High Court decisions verified against standard law reports (ITR/Taxman/CTR). Several deductions in this cluster are sunset for new undertakings but carry substantial pending litigation and remain the governing law for open assessments.

← ITA 1961 hub

Income-tax Act, 1961	Income-tax Act, 2025
s. 80-ID — hotels and convention centres in the National Capital Territory and adjoining districts, and hotels in World Heritage districts	No corresponding provision in the Income-tax Act, 2025
s. 80-ID(6)(a) and (b) — "convention centre" and "hotel"	s. 205(2)(c) and (5)(b) use these definitions for a separate purpose; not a counterpart