(a) The total built-up area occupied by all the cinema theatres comprised in the multiplex shall not be less than 22,500 square feet, and shall consist at least 50% of the total built-up area of the multiplex excluding the area specified for parking.Explanation.—For the purposes of this rule, the expression "modern stereo projection systems" shall consist of xenon lamp, platter and digital sound systems.
(b) The multiplex theatres shall be comprised of at least three cinema theatres and at least three commercial shops.
(c) Total seating capacity of all the cinema theatres comprised in the multiplex shall be at least 900 seats, and no cinema theatre should consist of less than 100 seats.
(d) The total built-up area occupied by all the commercial shops comprised in the multiplex theatre shall not be less than 3000 sq. ft., and the minimum built-up area of each shop shall not be less than 250 sq. ft.
(e) There shall be at least one lobby or foyer in the cinema theatres, whose area shall be at least 3 sq. ft. per seat.
(f) The multiplex theatre shall have adequate parking, toilet blocks and other public conveniences, as per local building or cinema regulations, and shall also fulfil all local building or cinema regulations in respect of fire and safety.
(g) The cinema theatres comprised in the multiplex theatre shall use modern stereo projection systems with at least two screen speakers per screen and one surround speaker per 25 seats in a theatre.
(h) The cinema theatres shall use seats with seat pitch not less than 20" (centre to centre).
(i) Ticketing system employed by the cinema theatres shall be fully computerised.
(j) The multiplex theatre cinema shall be centrally air-conditioned.
(2) A separate report of the audit, shall be furnished along with the return of income in respect of each eligible multiplex theatre, in Form No. 10CCBA and shall be duly signed and verified by an accountant as defined in the Explanation below sub-section (2) of section 288.
(3) In the first year of the claim of deduction, the assessee shall enclose along with the audit report, a copy of approvals for exhibition of cinema given by various State or local authorities, which shall, where applicable, include the following :—
(a) no-objection certificate with respect to the location of the multiplex by the concerned licensing authority;(4) After the first year of claim of deduction, in the subsequent four years, the audit report shall be enclosed with the operating license issued from time to time, by the concerned licensing authority for exhibition of cinema.
(b) permission for construction of the multiplex by the concerned licensing authority;
(c) permission to construct the building from the town planning authority or municipal corporation;
(d) completion certificate or occupation certificate, as the case may be, from the town planning authority or municipal corporation, certifying the completion of the multiplex theatre, during the period commencing on the 1st day of April, 2002 and ending on the 31st day of March, 2005; and
(e) operating license issued by the concerned licensing authority.
Reference/Source: Check at Income Tax site for latest version of the Rules - link