Section 27G: Tax credit for employees

27G. Tax credit for employees (1) Subject to this section, where an employee who has derived in the first month of an income year, a basic salary inclusive of compensation not exceeding 50,000 rupees, he shall be allowed a tax credit by way of deduction from income tax otherwise payable by him for that income year, provided his total annual net income in that income year does not exceed 700,000 rupees. (2) The tax credit allowable under subsection (1) shall be equivalent to 5 per cent of the chargeable income of the individual attributable to his net income from emoluments. (3) An individual whose net income is less than 650,000 rupees in an income year shall not be entitled to the tax credit under subsection (1). (i) in section 44B – (i) in the heading, by deleting the word “goods” and replacing it by the words “goods or manufacturing activities in a freeport zone”; (ii) by adding the following new subsection – (3) Where, in an income year, a freeport operator or private freeport developer is engaged in the manufacture of goods meant for local market in whole or in part, it shall be liable to income tax at the rate specified in Part II of the First Schedule on his chargeable Acts 2019 327 income, provided that the freeport operator or private freeport developer satisfies the conditions relating to the substance of its activities as may be prescribed. (j) by inserting, after section 49B, the following new section –