Special Economic Zone (SEZ) – Section 2(104) | Income-tax Act, 2025 vs 1961

§ 2(104) · Income-tax Act, 2025

Special Economic Zone

ITA 2025 · 2(104) ★ New in S.2 · Used in S.10AA · 1961 Act
Definition — Section 2(104) read with SEZ Act 2005, S.2(za)

Means each Special Economic Zone notified by the Central Government under the SEZ Act, 2005 — including Free Trade and Warehousing Zones and existing Special Economic Zones. SEZs are specially delineated enclaves treated as foreign territory for customs and trade purposes, operating under a single administrative framework with fiscal incentives for units set up within them.

Act Comparison
Income-tax Act, 2025
2(104)
Special Economic Zone
Income-tax Act, 1961
—
No direct equivalent
Newly defined in 2025
Key Points
  • New explicit standalone definition in the 2025 Act
  • SEZ units get profit deduction under the 2025 Act — maps to Section 10AA of the 1961 Act for first 5 years
  • GIFT City is an IFSC within an SEZ structure
💡 Practical Note

The 10AA deduction for SEZ units was grandfathered — new SEZ units after March 2020 are not eligible. Only units operational before that date continue to benefit.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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