Section 13 - Insertion of new section 35AC

Deduction for expenditure on eligible projects: allowed to approved entities subject to prescribed certificate and exclusivity.

Section 35AC allows an assessee to deduct expenditures paid to a public sector company, local authority, or National Committee approved association or institution, or incurred directly by a company, for carrying out eligible projects or schemes promoting social and economic welfare. The deduction is conditioned on filing a prescribed certificate with the return-issued by the recipient where applicable or by an accountant otherwise-and is exclusive of any deduction for the same expenditure under other provisions. The National Committee is constituted by the Central Government, which notifies eligible projects on the Committee's recommendations.