Investment Linked Deduction for Developing Housing Project, Production of Fertilizers U/S 35AD
Allowing adjustment of losses of New Hospital or New Hotel against can be set off against incomes of existing specified Business.
Read MoreDeduction Allowable for Contribution to Rural Development Programme (Section 35CCA)
Applicability: All assesses Nature of Expenditure: contribution made to approved association or institution for implementation of rural development programme and contribution to National fund for rural development or National urban poverty eradication fund. Deduction: Actual expenditure incurred. Subsequent withdrawal of approval: If the approval accorded to the university, college etc. is withdrawn subsequent to payment […]
Read MoreProvisions relating to site Restoration Fund (Section 33ABA)
Applicability: Applicable to an assessee carrying on business, consisting of prospecting or extraction or production of petroleum or natural gas or both, in India, in respect of which the Central Govt. has entered into an agreement with the assessee. Deposits: Deposit shall be made before the end of previous year with- SBI in a scheme […]
Read MoreAllow ability of Depreciation (Section 32)
Condition: In order to claim depreciation, the assessee has to fulfill the following conditions- Ownership: The asset shall be owned by the assessee. Used for business purpose: The assets should be wholly or partly used for the purpose of business during the previous year. Block of assets: It shall fall within the classification of the […]
Read MoreProfits and Gains of Business or Profession
Computation of Income under the Head Business or Profession (Section 29) The income under the head “Profits or Gains of Business or Profession” shall be computed in accordance with provisions contained in Sections 30 to 43D.
Read MoreSet –off and carry forward of unabsorbed depreciation
Treatment for Current year Depreciation: Treatment for unabsorbed depreciation: Unabsorbed depreciation of current previous year shall be added to following previous year’s depreciation. It can be set-off against any head of income. It can be carried forward to any no. of years until it is fully set-off. In case of carry forward of business loss […]
Read MoreProvisions of additional depreciation for newly purchased plant or machinery
Applicability: It is applicable to assesses engaged in the business of manufacture / production of any article or a thing. Eligible Asset: Any new machinery or plant acquired and installed after 31-03-2005. Ineligible Assets: Ships and Aircrafts Any machinery or plant which, before installation by the assessee, was used either within or outside India by […]
Read MoreExpenditure on Building, Allowable as Deduction (Section 30)
Condition: The building should be used for the purpose of business or profession during the relevant previous year. Deduction: The following expenses are allowed as deduction- Rent paid as tenant. Current repair expenses towards the premises. Land Revenue or local rates or municipal taxes. Insurance premium paid in respect of damage or destruction of the […]
Read MoreAvailability of Deduction to the Assessee engaged in the Business of Growing and Manufacturing Tea or Coffee or Rubber in India (Section 33AB)
1. Applicability: All assesses who carry on the business of growing and manufacturing tea or coffee or rubber in India. 2. Pre-condition: The assessee should deposit the amount in NABARD or special Deposit Account within earlier of 6months from the end of the relevant previous year or before the due date of filing return of […]
Read MoreTax implications in case of reorganization of Co-operative banks (Section 44DB)
1. Applicability: Business reorganization of a Co-operative bank. 2. Allowable deduction: The deduction u/s 32, 35D, 35DD or 35DDA shall be allowed in accordance with the provisions of this section. Where transfer of the undertaking takes place before the expiry of the period specified u/s 35D or 35DD or 35DDA successor Co-operative bank is entitled […]
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