Investment allowance for new assets in notified backward areas is available subject to five-year transfer restrictions and reorganisation exceptions. Additional investment allowance under section 32AD is available for undertakings or enterprises set up for manufacture or production in notified backward areas, subject to acquisition and installation of a new asset within the specified period and compliance with prescribed exclusions. The allowance is 15% of the actual cost of the new asset and is available in the year of installation. If the asset is transferred within five years, the allowance is deemed income taxable under Profits and gains of business or profession, subject to specified exceptions for amalgamation, demerger and business re-organisation.
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.
Investment allowance for new assets in notified backward areas is available subject to five-year transfer restrictions and reorganisation exceptions.
Additional investment allowance under section 32AD is available for undertakings or enterprises set up for manufacture or production in notified backward areas, subject to acquisition and installation of a new asset within the specified period and compliance with prescribed exclusions. The allowance is 15% of the actual cost of the new asset and is available in the year of installation. If the asset is transferred within five years, the allowance is deemed income taxable under Profits and gains of business or profession, subject to specified exceptions for amalgamation, demerger and business re-organisation.
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