Comparison of SCHEDULE IX "DEDUCTION FOR TEA DEVELOPMENT ACCOUNT, COFFEE DEVELOPMENT ACCOUNT AND RUBBER DEVELOPMENT ACCOUNT FOR COMPUTING INCOME UNDER THE HEAD "PROFITS AND GAINS OF BUSINESS OR PROFESSION"." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....INESS OR PROFESSION". Income-tax Act, 2025 At a Glance The document is SCHEDULE IX (Schedule-IX) to the Income Tax Bill, 2025 (Old Version), prescribing deductions for deposits into Tea Development Account, Coffee Development Account and Rubber Development Account when computing income under the head "Profits and gains of business or profession." It matters to taxpayers engaged in growing and manufacturing tea, coffee or rubber, and to tax administrators overseeing allowable deductions and audit/compliance. Effective date or decision date: Not stated in the document. Background & Scope Statutory hook: Schedule IX proceeds "See section 48" (as annotated in the text). The Schedule governs quantum of deduction for amounts deposited into s....

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....ff of brought-forward losses (para 1(2) referencing section 110). The Schedule contains deeming provisions to pull back amounts into taxable income when withdrawn other than for specified purposes, when utilised for specified articles or when not utilised after release (para 3). It also contains anti-abuse rules on sale/transfer of assets within eight years (para 5). Exceptions/Provisos Carve-outs and conditions in the Schedule include: * Deduction limited to 40% of business profits computed under the head before making the deduction (para 1(1)). * Deduction allowed only if the assessee is carrying on the specified business in India and deposits funds in the specified account (para 2(1)(a)-(b)). * Audited accounts and furnishing of ....

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....rplay The Schedule refers to other statutory provisions: section 48 (heading reference), section 63 (specified date for furnishing audit report), and section 110 (set off of loss carried forward). It also invokes external statutory entities and enactments in definitions (Coffee Act, 1942; National Bank for Agriculture and Rural Development Act, 1981; Rubber Act, 1947; Tea Act, 1953; Companies Act, 2013 s.2(45)). Interaction with rules, notifications or circulars beyond those citations: Not stated in the document. Practical Implications * Compliance and risk areas: Claimants must ensure strict compliance with deposit requirements and audit filings (para 2(1)(b), 2(1)(c)). Failure to comply or unauthorised withdrawals will trigger immedia....

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.... partnerships or AOPs cannot pass the deduction to partners/members individually (para 2(3)-(4)). * The Schedule cross-references other statutory sections and statutory bodies; specific procedural form/manner is left to prescription (section 63 timing; "as prescribed") (paras 1(2), 2(1)(c)). * Definitions in para 6 are sector-specific and determine the scope of eligible schemes/accounts and institutional actors. Differences from the Parallel Version and Practical Impact Comparative differences between this Schedule (Income Tax Bill, 2025 - Old Version) and the other text presented (Schedule-IX of Income-tax Act, 2025) include the following principal divergences and their practical consequences: * Reference for set off of loss: This ....

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.... be prescribed." * Practical impact: Both contemplate prescription; the Bill's explicit "verified by such accountant" emphasises accountant verification. Operationally this is minor but could affect the nature of the certification required; the Bill version appears to require both statutory audit and a separate accountant's verification form when accounts are audited under another law (para 2(2)). * Variation in wording for compliance where audit required under other law: The Bill version requires furnishing "the report of such audit along with report by an accountant," whereas the Act version requires furnishing "the report of such audit and a report by an accountant." * Practical impact: Substantively similar; drafting diffe....