Treatment u/s 32 ac(1a)

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Anurag Aggarwal (Querist)
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03 July 2015 Dear Sir (s)

The Company is eligible for Investment Allowance U/s 32 AC (1A) of Finance Bill, 2014. Please advise if they need to make the provisioning for the same in the Balance Sheet or it shall only be incorporated in the Income Tax Computation at the time of filing of return?

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Anurag Aggarwal

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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03 July 2015 Investment allowance u/s 32AC is only a deduction for computing taxable profit under PGBP. No reserve needs to be created out of profits like it was required in the past.