Applicability: The assessee should be an Indian Company. Deduction: Expenditure incurred for the purpose of amalgamation or de-merger will be allowed as a deduction in 5 equal installments commencing from the previous year in which amalgamation or de-merger took place. Such expenditure will not be allowed as deduction under any other provisions of the Act. […]
Read MoreApplicability: The assessee should be an Indian Company or Non-Corporate resident assessee. Purpose of preliminary expenses: Before commencement of business – For setting up of any undertaking or business. After commencement of business – Extension of existing undertaking Or setting up new unit. Note: W.e.f. A.Y. 2009-10, the benefit u/s 35D is also available to […]
Read MoreConditions for allow ability: Expenditure should be capital in nature. It should be incurred for the purpose of acquiring any right to operate telecommunication services. Payment should have been actually made to obtain a license for claiming deduction. It may be incurred either before commencement of business or any time during the previous year. Amount […]
Read MoreApplicability: 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 […]
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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 […]
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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 […]
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Items Chargeable Under the Head Business or Profession (Section 28) Sec. 28 Income under the head business or profession (i) Profits and gains of business or profession. Speculation business shall be treated as distinct and separate from other business as speculation losses to be treated separately. (ii) Compensation or other payment for Termination or modification […]
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