Development rebate for qualifying business assets allows a year-of-acquisition deduction, subject to conditions and limited carryforward. Development rebate permits a deduction for a new ship or new machinery or plant (excluding office appliances and road transport vehicles) owned and wholly used in the assessee's business, claimable in the year of acquisition or first use; rates vary by asset type and use. Eligibility extends to certain previously used ships and imported machinery subject to prescribed conditions. If income is insufficient, the allowed rebate reduces income to nil and the balance is carried forward for up to eight assessment years, with ordering rules for multiple carryforwards. Transfers by amalgamation or firm succession preserve remaining rebate subject to conditions, and government may notify future disallowance; rebate is excluded for machinery in office or residential premises except approved hotels of Indian companies.