(1) Income of approved tax holiday entities shall be computed separately from any other business.

(2) The income of the approved tax holiday entity shall be computed in the same manner as the income under the head “Income from Business”.

(3) Only the normal depreciation allowance mentioned in Part 1 of the Third Schedule shall be applicable in computing the income from business of an approved tax holiday entity.

(4) The computed loss of an approved tax holiday entity for any income year shall not be set off against the profits of any other entity or source of the assessee, which is not an approved tax holiday entity.

(5) The benefit of tax holiday shall not be applicable to the income arising from the said entity as a result of disallowance under section 55 and such income shall be taxed at the regular rate.