SECTION 35AD

[jitendra jain]

Dear team,

in my last query it is clear that section 80IA is no more applicable for infra projects and further we can take deductions of 35AD. our company is private limited company registered with MSME (micro) registration comes as "Availing benefit of Primary Sector Lending (PSL) only.

How section 35AD works? can we take 100% deduction of capital expenditure in very Friest year. our business profile is we are allotted way side amenity on Samrudhi highway (Nagpur- Mumbai) this project comes under PPP public private partnership.

we are developing all infrastructure food plaza, public amenity, hotel motel and many other facilities in that area. land allotted by govt on long lease. area comes in Vidarbha (backward area of Maharashtra) industrial zone is D+...(The project comes under Maha tourism schemes)

please guide us in which IT section we are fit for take deductions and benefits maximum.

thanks & regards.

jitendra jain

9422727133

AI Summary

Capital expenditure deduction under section 35AD for qualifying hotel components in a PPP wayside amenity can be claimed immediately.
Section 35AD allows immediate deduction of qualifying capital expenditure for specified businesses where conditions are met; expenditure on land, goodwill and financial instruments is excluded and the business must be new without reuse of old plant. Hotel or motel components of the PPP wayside amenity that qualify as specified businesses can claim capital expenditure in the year incurred. Other components not falling within the specified list should be capitalised and claimed under depreciation, and complementary deductions or state incentives may be available subject to separate eligibility rules.