Are some business incomes eligible for the Section 10AA deduction? Special deductions under Section 10AA of the Indian Income Tax Act are available to newly established Special Economic Zone (SEZ) units. The purpose of these discounts is to encourage investment in approved zones, hence stimulating economic growth. This section provides tax benefits to entities that meet certain requirements, creating an environment that is favorable for company development and export promotion. In order to maintain a balance between financial incentives and regulatory compliance, the provisions under Section 10AA outline the requirements and restrictions for claiming these deductions.