(1)Where the gross total income of an assessee being an Indian company or a person (other than a company) who is resident in India includes any profits and gains derived from the business of-(a)the execution of a foreign project undertaken by the assessee in pursuance of a contract entered into by him, or(b)the execution of any work undertaken by him and forming part of a foreign project undertaken by any other person in pursuance of a contract entered into by such other person, with the Government of a foreign State or any statutory or other public authority or agency in a foreign State, or a foreign enterprise, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, ][a deduction from such profits and gains of an amount equal to- [ Substituted by Act 10 of 2000, Section 32, for " a deduction from such profits and gains of the amount equal to fifty per cent. thereof" (w.e.f. 1.4.2001).](i)forty per cent. thereof for an assessment year beginning on the 1st day of April, 2001;(ii)thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2002;(iii)twenty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;(iv)ten per cent. thereof for an assessment year beginning on the 1st day of April, 2004, and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year]:[Provided that the consideration for the execution of such project or, as the case may be, of such work is payable in convertible foreign exchange.
