Section 180A:
Consideration for know-how.
1Where 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 received or receivable by him 2
during the previous year relevant to the
assessment year commencing on the 1st day of April, 2000 or earlier assessment years 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 thereof 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.
Notes:
1. Ins. by Act 32 of 1985, s. 31 (w.e.f. 1-4-1986).
2. Subs. by Act 27 of 1999, s. 68, for “during the previous year” (w.e.f. 1-4-2000).