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Rule 18BBC of Income Tax Rules 1962: Prescribed authority for approval of hotels located in certain areas

Rule 18BBC : Prescribed authority for approval of hotels located in certain areas
(Chapter: IV - Tax Exemptions and Reliefs)

(1) For the purposes of sub-clause (iii) of clause (c) of sub-section (7) of section 80-IB, the prescribed authority,—
(a) in relation to hotels located in an area or place referred to in clause (a) of that sub-section, shall be the Director General (Income-tax Exemptions) who shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India;
(b) in relation to hotels located in any place referred to in clause (b) of that sub-section, shall be the Director General in the Directorate General of Tourism, Government of India.


(2) For the purpose of clause (a) of sub-section (7) of section 80-IB, a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely :—
(a) such hotel is located in an area or place specified under clause (a) of the said sub-section (7);
(b) there are not more than 300 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (a) of the said sub-section (7) within the jurisdiction of the revenue sub-division in which the hotel is located;
(c) in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (a) of the said sub-section (7) on the recommendations of the Department of Tourism.



Extra Notes for Readers:

- Rule 18BBC was introduced by the Income Tax (7th Amendment) Rules, 1992, w.e.f. 27-3-1992



Reference/Source: Check at Income Tax site for latest version of the Rules - link

This page was last updated on 17th October 2016.
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