Deduction in respect of expenditure on production of feature in case of a films producer/distributer - (New) Rule 272 / (Old) Rule 9A

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....film Release at least 90 day before the end of Such Tax Year [ Rule 272(2) ] Feature film is certified for release by the Board of Film Censors in any tax year and in such tax year • (a) the film producer sells all rights of exhibition of the film, the entire cost of production of the film shall be allowed as a deduction in computing the profits and gains of such tax year; or • (b) the film producer- • (i) himself exhibits the film on a commercial basis in all or some of the areas; or • (ii) sells the rights of exhibition of the film in respect of some of the areas; or • (iii) himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibitio....

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....lowed as a deduction in computing the profits and gains of such tax year and • the balance, if any, shall be carried forward to the next following tax year and allowed as a deduction in that year. No Deduction Without exhibits the film on a commercial basis [ Rule 272(4) ] • Where, during the tax year in which a feature film is certified for release by the Board of Film Censors, and the film producer-- • (a) does not himself exhibit the film on a commercial basis; or • (b) does not sell the rights of exhibition of the film, • no deduction shall be allowed in respect of the cost of production of the film in computing the profit and gains of such tax year and • e....

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....s the minimum guarantee and the amount, if any, received in excess of the guaranteed amount, • are credited in the books of account maintained by him in respect of the year in which the deduction is admissible. Meaning of Important Term for the purpose of this rule  (a) sale of the rights of exhibition of a feature film includes the lease of such rights or their transfer on a minimum guarantee basis; and (b) the rights of exhibition of a feature film shall be considered to have been sold only on the date,- • (i) when the positive prints of the film are delivered by the film producer to the purchaser of such rights; or • (ii) when the negative of the film is delivered by the film producer ....