[Section 30 to 37]- Expenses Allowed as a Deduction for computing Income under ‘Profit & Gains of Business or Profession’

 

Table of Contents

 

·         1.   [Section 30]- Rent, Rates, Taxes, Repairs and Insurance for Buildings  – for computing Profit & Gains of Business or Profession

·         2.   [Section 31]- Repairs and Insurance of Machinery, Plant and Furniture  –  for computing Profit & Gains of Business or Profession

·         3.   [Section 32]- Depreciation   – for computing Profit & Gains of Business or Profession

o    Types of depreciation allowance under Income-tax Act:

o    Steps for Computing Depreciation:

·         4.   [Section 32AD]- Deduction in respect of Investment in New Plant and Machinery in notified backward areas  in certain States   – for computing Profit & Gains of Business or Profession

·         5.   [Section 33AB]- Deduction on Tea Development Account, Coffee Development Account and Rubber Development  Account   –  for computing Profit & Gains of Business or Profession

o    Quantum of Deduction under section 33AB :

§  How to Compute Profits from such Business:

·         6.   [Section 33ABA]- Deduction on Site Restoration Fund   –  for computing Profit & Gains of Business or Profession

o    Quantum of Deduction Under Section 33ABA:

·         7.   [Section 35]- Deduction on Expenditure on Scientific Research   –  for computing Profit & Gains of Business or Profession

o    (a)   In-house Scientific Research:

§  (i)      Revenue Expenditure [Section 35(1)(i)]:

§  (ii)     Capital expenditure [Section 35(1)(iv) read  with section 35(2)]:

·         8.   [Section 35ABA(1)]- Deduction of capital expenditure incurred for acquiring any right to use spectrum for  telecommunication services   –  for computing Profit & Gains of Business or Profession

·         9.   [Section 35ABB]- Deduction on Expenditure for obtaining Licence to operate Telecommunication Services   –  for computing Profit & Gains of Business or Profession

·         10. [Section 35AD]- Deduction in respect of Expenditure on Specified Business  –  for computing Profit & Gains of Business or Profession

o    Nature and Amount of Deduction under section 35AD :

·         11. [Section 35CCA]-  Deduction on Expenditure by way of payments to associations and institutions for carrying out Rural  Development Programmes   – for computing Profit & Gains of Business or Profession

·         12. [Section 35CCC]- Weighted Deduction of 150% for expenditure incurred on Agricultural Extension Project    – for computing Profit & Gains of Business or Profession

·         13. [Section 35CCD]- Weighted deduction of 150% for Expenditure incurred by a company on Skill Development  Project – for computing Profit & Gains of Business or Profession

·         14. [Section 35D and Rule 6AB]- Amortisation of certain Preliminary Expenses   – for computing Profit & Gains of Business or Profession

·         15. [Section 35DD]- Amortisation of expenditure in case of Amalgamation Or Demerger   – for computing Profit & Gains of Business or Profession

·         16. [Section 35DDA]- Amortisation of expenditure incurred under Voluntary Retirement Scheme   – for computing Profit & Gains of Business or Profession

·         17. [Section 35E and Rule  6AB]- Deduction for expenditure on Prospecting, etc., for Certain Minerals   – for computing Profit & Gains of Business or Profession

·         18. [Section 36]- Other Allowable Deductions   – for computing Profit & Gains of Business or Profession

·         19. [Section 37(1)]- General Deductions  – Allowed for computing  Profit & Gains of Business or Profession

o    1.     Remuneration to Employees U/s 37(1):

o    2.     Payment of Penalty / Damages U/s 37(1):

o    3.     Legal Expenses U/s 37(1):

o    4.     Expenditure on Raising Loans U/s 37(1):

o    5.     Interest U/s 37(1) :

o    6.     Expenditure on Advertisement U/s 37(1) :

o    7.     Expenses allowable under specific instructions of CBDT U/s 37(1)

 

 


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