Guidelines for approval under proviso to clause (a) of sub-section (2) to concerns carrying out work in connection with preparation of feasibility/project report, etc., for the purposes of amortisation of preliminary expenses

Guidelines for Amortization of Preliminary Expenses u/s 35D of Income Tax Act: Eligibility and Application Criteria.

The circular outlines guidelines for approval under Section 35D of the Income Tax Act, which allows for the amortization of preliminary expenses incurred by Indian companies or resident assessees. These expenses relate to the preparation of feasibility or project reports, market surveys, and engineering services. To qualify, the work must be done internally or by an approved external concern. Approval criteria include the applicant's competence, residency, experience, and income tax clearance. Applications must be submitted in a specified format, detailing the applicant's qualifications, consultancy services, and prior approvals from government entities.