« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Mr Taxman, can you tell me...... RBI to mop up Rs 6,000 cr via bond auction... » Sec 80 IA withdrawal to hit construction cos March, 03rd 2007 Construction companies will see their tax burden going up on account of the removal of Section 80 IA benefits. Section 80-IA was introduced for encouraging private sector participation in the development of infrastructure, and not for persons/entities who were merely executing the civil construction work or any other works contract. The new amendment will take retrospective effect from 1st April, 2000, and will, accordingly, apply in relation to the assessment year 2000-2001 and subsequent years. As a result, construction companies that merely execute development work will have to shell out a lumpsum towards past tax provisions. Thus, in a case where a entity makes the investment and carries out the civil construction work will be eligible for tax benefit under section 80-IA. In contrast to this, an entity that enters into a contract with an eligible participant for executing works contract will not be eligible for the tax benefit under section 80-IA. Construction contractors had so far been availing of the section 80IA benefit for projects awarded by infrastructure developers viz NHAI and state government agencies-awarded projects in roads & bridges, irrigation, water supply and sanitation. These benefits meant that companies were paying a minimum alternate tax (MAT)  of 11.2%. However, the clarification to section 80IA now stipulates that these companies pay the full tax rate of 33.66% from retrospective effect from 1st April, 2000.    RETROSPECTIVE IMPACT In Rs crore   IVRCL     54.90 HCC    42.40 Gammon     32.00 NCC     26.00 Source and estimates by Prabhudas Lilladher Going forward, companies will have to provide for full tax.  According to an analysis by brokerage firm Prabhudas Lilladher, these companies will have to adjust for this from their reserves thereby impacting their respective net worth.