Section 144
Section 144: deduction for newly established SEZ units
Section 144 continues the deduction available to an "entrepreneur" (as defined under the Special Economic Zones Act, 2005) operating a unit in a Special Economic Zone that manufactures or produces articles or things, or provides services, for export - the deduction most people know as "10AA" under the repealed Income-tax Act, 1961. As with the other carry-forward sections in this Chapter, both the amount and the eligible years are fixed by reference to the old section.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 144 does
Where an assessee, being an entrepreneur as referred to in section 2(j) of the Special Economic Zones Act, 2005, who begins to manufacture or produce articles or things or provide any services as referred to in section 10AA of the Income-tax Act, 1961, is eligible to claim a deduction from the profits and gains derived from the export of such articles, things or services under that section (as if the said Act had not been repealed), a deduction from those profits and gains is allowed in computing total income under the 2025 Act.
How the deduction is worked out
- The amount of deduction is calculated as per the provisions of section 10AA of the Income-tax Act, 1961.
- The deduction under the 2025 Act is allowed only for the tax years for which it would have been allowed under section 10AA of the Income-tax Act, 1961, as if that Act had not been repealed.
Frequently asked questions
Does Section 144 create a new SEZ unit deduction?
No. It continues the export-profit deduction an entrepreneur's SEZ unit was already entitled to under section 10AA of the Income-tax Act, 1961, for whatever remains of that section's original eligibility period, calculated the same way that section prescribed.
Who can claim this deduction?
An assessee who is an entrepreneur as defined in section 2(j) of the Special Economic Zones Act, 2005, operating a unit that manufactures or produces articles or things, or provides services, as referred to in section 10AA of the Income-tax Act, 1961, and who was eligible for the deduction under that section.
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Talk to our tax team about SEZ unit tax benefitsLast updated 9 September 2026