Explanation
Section 80IB contains numerous sub-sections each governing a different business category with its own eligibility conditions, deduction percentage, and sunset date. Key sub-sections include: §80IB(1)–(7) for industrial undertakings in certain areas; §80IB(10) for residential housing projects approved by local authority before 31 March 2008 — still relevant for long-running projects completing construction; §80IB(11A) for integrated handling, storage, and transportation of food grains; §80IB(11B) for operating a cold chain facility; §80IB(13) for hospitals in certain non-metro areas; and §80IB(9) for production of mineral oil and natural gas. The deduction is typically 100% for the first 5 years and 30%/25% (depending on company type) for the next 5 years. All §80IB claims require that the undertaking was not formed by splitting or reconstruction of an existing business. This section is now mainly relevant for projects already in mid-claim. For new projects, §80IA or sector-specific incentives are more appropriate. Legal and chartered accountant review is mandatory before claiming. Verify on the income-tax portal before filing.