Section 10BB is a short interpretive provision. It applies to the profits and gains derived by an undertaking from the production of computer programmes under s. 10B as it stood before its substitution by section 7 of the Finance Act, 2000. For that purpose, s. 10B is read as if the words “computer programmes or processing or management of electronic data” had been substituted for “computer programmes”.
The section does not grant a deduction of its own. It widens the activity covered by the earlier version of s. 10B, so that profits from processing or management of electronic data were treated in the same way as profits from producing computer programmes.
Operative consequences
Profits from processing or management of electronic data fell within the earlier s. 10B relief on the same terms as computer programmes.
Its effect depends entirely on the pre-2000 s. 10B. The present s. 10B uses its own definition of “computer software” in Explanation 2.
Status
The section remains printed in the 1961 Act but has no operation for AY 2026-27. The s. 10B it refers to was replaced in 2000, and the present s. 10B allows no deduction for AY 2012-13 and later years. The Finance Act, 2026 does not amend this section.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject there is no provision in the Income-tax Act, 2025.
Function in the statutory architecture
Section 10BB is a short interpretive provision. It applies to the profits and gains derived by an undertaking from the production of computer programmes under s. 10B as it stood before its substitution by section 7 of the Finance Act, 2000. For that purpose, s. 10B is read as if the words “computer programmes or processing or management of electronic data” had been substituted for “computer programmes”.
The section does not grant a deduction of its own. It widens the activity covered by the earlier version of s. 10B, so that profits from processing or management of electronic data were treated in the same way as profits from producing computer programmes.
Operative consequences
Status
The section remains printed in the 1961 Act but has no operation for AY 2026-27. The s. 10B it refers to was replaced in 2000, and the present s. 10B allows no deduction for AY 2012-13 and later years. The Finance Act, 2026 does not amend this section.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject there is no provision in the Income-tax Act, 2025.