Kindly clarify - whether excess amount drawn from the Development Account (Sec 33AB) can be carried forward to subsequent year, within the scheme peirod of 4 years.
That is to say >>>> In the year of excess amount drawn >> offer it to tax and subsequent year claim it back on actual spent, since the amount spent is within the Scheme period.
Tax Implications of Withdrawing Excess from Development Account under Section 33AB Explained: Limits and Carry Forward Rules A participant inquired about the tax implications of withdrawing an excess amount from a Development Account under Section 33AB and whether it can be carried forward within the scheme's four-year period. The question involved offering the excess amount to tax in the year it was drawn and claiming it back in subsequent years if spent within the scheme period. A respondent clarified that the maximum allowable amount is the lower of the sum deposited in the special account or 40% of the business profit. (AI Summary)
TaxTMI 
TaxTMI 
