Clause 11 - Amendment of section 35DDA

Amortisation of voluntary retirement expenditure: successor LLPs inherit instalment deduction treatment while predecessor deduction is disallowed in conversion year.

Amendment extends the instalment deduction regime for expenditure on voluntary retirement schemes to a successor limited liability partnership on reorganisation of a private or unlisted public company into an LLP, treating the LLP as if reorganisation had not occurred; it also disallows the predecessor company from claiming the deduction in the year of conversion to ensure the tax benefit follows the successor. These changes apply from 1 April, 2011 for the assessment year 2011-2012 onwards.