Section 10AA of the Income-tax Act, 1961 provides a tax exemption for newly established units in Special Economic Zones (SEZs). This section allows for a deduction of profits and gains derived from the export of articles or things or services for a specified period. The deduction is available for a total of 15 years, with 100% exemption for the first 5 years, 50% for the next 5 years, and 50% of the ploughed back export profit for the remaining 5 years. The section aims to promote economic growth and increase exports by incentivizing businesses to set up operations in SEZs. To qualify, the unit must be a new establishment and not formed by splitting up or reconstructing an existing business. The burden of proof lies with the taxpayer to demonstrate eligibility for the deduction, including maintaining proper books of accounts and obtaining necessary approvals from the SEZ authorities.