Deductions for Tea, Coffee, Rubber Businesses under Section 33AB: Key Rules on Deposits, Profits, and Audits
Section 33AB of the Income Tax Act provides deductions for businesses engaged in growing and manufacturing tea, coffee, or rubber in India. Eligible assessees can claim deductions up to the lower of the amount deposited in NABARD or a deposit account, or 40% of the profits and gains from such business. The deduction is applicable to composite income and must be claimed before setting off brought forward losses. Deposits must be made within specified timelines, and misuse of funds can lead to the amount being considered taxable income. Audit by a Chartered Accountant is mandatory, and specific conditions apply to withdrawals and utilization of funds.