Deduction in respect of expenditure on Specified Business - (New) Section 46 / (Old) Section 35AD

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....escribed. 1st April, 2010. 5. Developing and building a housing project under a scheme for affordable housing framed by the Central Government or a State Government, and which is notified by the Board in this behalf in accordance with the guidelines as may be prescribed. Procedure for notification of an affordable housing project as a specified business according to Rule 36.. 1st April, 2011. 6. A new plant or a newly installed capacity in an existing plant for production of fertilizer. 1st April, 2011. 7. Setting up and operating an inland container depot or a container freight station notified or approved under the Customs Act, 1962 (52 of 1962). 1st April, 2012. 8. Bee-keeping and production of honey and beeswax. 1st April, 2012. 9. Setting up and operating a warehousing facility for storage of sugar. 1st April, 2012. 10. Laying and operating a slurry pipeline for the transportation of iron ore. 1st April, 2014. 11. Setting up and operating a semi-conductor wafer fabrication manufacturing unit, and which is notified by the Board in this behalf in accordance with the guidelines as may be prescribed. Pr....

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....mmencement of business. Sub - Section (3) : Condition for Eligible Business This section shall apply to the specified business fulfilling all of the following conditions:- • (a) it is not set up by • splitting up, or the reconstruction, of an already existing business; • transfer of machinery or plant previously used for any purpose to the specified business; • (b) Special conditions for pipeline business • if the business is of the nature referred to in sub-section (11)(d)(iii) and such business- • (i) is owned by • a company formed and registered in India under the Companies Act, 2013 or by a consortium of such companies or by an authority or a board or a corporation established or constituted under any Central Act or State Act; • (ii) has been approved by the Petroleum and Natural Gas Regulatory Board established under section 3(1) of the Petroleum and Natural Gas Regulatory Board Act, 2006 and notified by the Central Government in this behalf; • (iii) has made not less than such proportion of its total pipeline capacity as specified by regula....

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....bsp; Any asset for which a deduction is claimed and allowed under this section-- • (a) shall be used only for the specified business for a period of eight years beginning with the tax year in which such asset is acquired or constructed; • (b) is used for the purpose other than specified business during the period referred to in clause (a), and • is not chargeable to tax under section 26(2)(k), then the total amount of deduction so claimed and • allowed in one or more tax years, as reduced by the amount of depreciation allowable under section 33, as if no deduction under this section was allowed, • shall be deemed to be the income chargeable under the head "Profits and gains of business or profession" of the tax year in which the asset is so used. • Exception of clause (b)  • shall not apply to a company which has become a sick industrial company under section 17(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, as it stood before its repeal by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 during the period specified in clause (a).....

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....oping and building a housing project (applicable  from the assessment year 2012-2013) Any Person Developing and building the housing projects should be under a scheme for affordable housing framed  by the Central Government  or a State Government  and notified by the board 6. On or after April 1, 2012 Production of fertilizer in India ( applicable from the assessment year 2012-2013) Any Person Not required Important Note:- The above deduction of 150% shall be restricted to 100% of Capital expenditure w.e.f. 1-4-2018. Any expenditure of capital nature shall not include expenditure for acquisition of land or goodwill or financial instruments. Note  1. cold chain facility. "Cold chain facility" means a chain of facilities for storage or transportation of agricultural and forest produce, meat and meat products, poultry, marine and dairy products, products of horticulture, floriculture and agriculture and processed food items under scientifically controlled conditions including refrigeration and other facility necessary for the preservation of such produce. 100% DEDUCTION AVAILABLE TO ASSESSEES CARRYING ON SPECIFIED BUSINES....

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....Person No approval Note: 1. "infrastructure facility" means- • (i) a road including toll road, a bridge or a rail system; • (ii) a highway project including housing or other activities being an integral part of the highway project; • (iii) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system; • (iv) a port, airport, inland waterway, inland port or navigational channel in the sea Capital expenditure eligible for deduction For Specified Business • 100% Deduction shall be allowed in respect of any expenditure of capital nature incurred after the commencement of business wholly and exclusively for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him. • Revenue Expenditure will also be allowed as 100% deduction. For Specified Business essential for Indian Economy • 150% Deduction shall be allowed in respect of any expenditure of capital nature incurred after the commencement of business wholly and exclusively for the purposes of....

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.... natural gas pipeline network ii. 1/4^th of total pipeline capacity for petroleum product pipeline. Deduction u/s 80-IA to 80RRB and section 10AA shall not be allowed under Section 35AD. However, deductions under section 80C, 80D, 80E, 80G, 80TTA, 80U etc. shall be allowed. Capital expenditure which is allowed as deduction under section 35AD is not eligible for depreciation. Loss of specified business of section 35AD can be set off in current year and future years only against the profits of any specified business referred to in section 35AD. Loss of specified business referred in section 35AD carried forward indefinitely. If asset on which section 35AD is allowed is sold/ destroyed, then the entire sale price / insurance compensation taxable as PGBP. No capital gains shall arise even if sale price/ insurance compensation exceeds the cost of assets. If asset on which section 35AD is claimed to be sold in slump sale, then for computing net worth under section 50B, its cost shall be taken as NIL. If asset on which deduction under section 35AD is claimed is transferred under circumstances referred to in Section 47, its actual cost to transferee sha....