Is deduction under Section 10AA applicable for certain business incomes? Under the Indian Income Tax Act, Section 10AA provides special deductions for newly established Special Economic Zone (SEZ) units. These deductions aim to promote economic growth by incentivizing investments in designated zones. Entities meeting the specified criteria can avail themselves of tax benefits under this section, fostering a conducive environment for business development and export promotion. The provisions under Section 10AA delineate the conditions and limitations for claiming these deductions, ensuring a balance between economic incentives and regulatory compliance.