Tax deduction for housing projects aided by World Bank permitted subject to reserve allocation, restricted use, and recomputation. A limited deduction from profits of World Bank aided housing projects awarded on global tender is allowed for Indian companies or resident persons provided separate audited accounts are maintained and a specified portion of profits is credited to the Housing Projects Reserve Account, to be used only for business purposes over five years; premature non business use or distribution triggers recomputation of income and amendment of assessment, and such income is ineligible for any other deduction under the chapter.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction for housing projects aided by World Bank permitted subject to reserve allocation, restricted use, and recomputation.
A limited deduction from profits of World Bank aided housing projects awarded on global tender is allowed for Indian companies or resident persons provided separate audited accounts are maintained and a specified portion of profits is credited to the Housing Projects Reserve Account, to be used only for business purposes over five years; premature non business use or distribution triggers recomputation of income and amendment of assessment, and such income is ineligible for any other deduction under the chapter.
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