# The Finance Act, 1985, Section 31: Insertion of new section 180A

- Act: The Finance Act, 1985 (Act 32 of 1985)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1985/section/31/

## Text

Insertion of new section 180A. 31. After section 180 of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1986 namely: — 180A. Consideration for know how.—Where the time taken by an individual, who is resident in India, for developing any know-how is more than twelve months, he may elect that the gross amount of any lump sum consideration re-ceived or receivable by him during the previous year for allowing use of such know-how shall be treated for the purposes of charging income-tax for that year and for each of the two immediately preceding previous years as if one-third there of were included in his income chargeable to tax for each of those years respectively and if he so elects, notwithstanding anything contained; in any other provision of this Act,— (a) such gross amount shall be so treated, and (b) the assessments for each of the two preceding previous years shall, if made, be accordingly rectified under section 154, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the assessment relating to the previous year in which the amount was received or receivable by such individual is made; Explanation.—-For the purposes of this section, the expression "know-how" has the meaning assigned to it in section 35AB.". [Finance Act, 1985] © Copyright. Taxmann Publications Pvt. Ltd.

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