Amortisation of expenditure for development of Certain Minerals - (New) Section 51 / (Old) Section 35E

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fied under section 51(2) every year. • Expense is spread over 10 years • Relevant tax years: The years in which deduction is claimed Qualified Expenditure [ Section 51(2) /(3) / (4) ] Only certain expenditures qualify: • Must be incurred: • Any time of during the year of commercial production, OR • Any one or more of the 4 years immediately preceding before that year • Must be wholly and exclusively on • any operations relating to prospecting for any mineral or group of associated minerals specified in Part A or Part B, respectively, of the Schedule XII or • the development of a mine or other natural deposit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o in sub-sections (2) and (3)] of any mine or other natural deposit of the mineral or any one or more of the minerals in a group of associated minerals under this section in respect of which the expenditure was incurred. Carry forward of unabsorbed deduction [ Section 51(6) ] If any part of the instalment for a relevant tax year is not fully allowed • It shall be carried forward to the subsequent tax year, becoming part of the instalment of that tax year  • but no instalment shall be carried forward beyond the tenth tax year from the tax year in which commercial production began. Audit requirement (for non-companies) [ Section 51(7) ] • Where the assessee is a person other ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h minerals or group of associated minerals specified in the Seventh Schedule. Expenditure incurred wholly and exclusively on: • Any operations relating to prospecting for any mineral or • On the development of a mine or other natural deposit of any mineral, • Shall be allowed deduction in equal installments over a period of 10 years from the year in which the commercial production has been commenced. • The amount of such installment of any PY that remained unallowed, shall be carried forward and added to the next installment and deemed to be part of that installment. However, no part of any installment shall be carried forward beyond the 10th PY. Such expenditure should be inc....