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?
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.
CAclubindia
