Sec 35AD of I.T Act

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sunny garg

student

167 Points Joined March 2013

I'm Ca final student
i purshased DT summary book of Vinod Gupta Sir
Under sec 35AD Deduction was 100% for specified buisness but earlier there was 2 rate of deduction
i.e 150% for Spec. Bus. essential for indian economy
and 100% for spec. Bus.
Now in book only given 100 % for all
But in illus in summary book solved as per 150% rate of deduction
so i confused what the correct .

what the rate of deduction under sec 35AD as per FA 2017.

Replies (7)

Pallav Bansal

CA Final

372 Points Joined February 2012

From AY 2018-19 (FA 2017) there is only one rate under section 35AD and that rate is 100%..

Pallav Bansal
(Thumbs up👍 if I resolved your query)

Pallav Bansal

CA Final

372 Points Joined February 2012

VG Sir forgot to amend the illustration..

shilpi

student

780 Points Joined January 2017

In our IPC module ,rate of deduction is 100%of capital expenditure (Asst year 2018-19 ).This is effected by omission of sub section(1A) providing for such weighted deduction.

divyakrishnan

Chartered Accountant

92 Points Joined June 2012

Untill FY 2016-17, As per Section 35(AD) (1A), 150% of deduction is allowed for the businesses as mentioned in following sub clauses of sub section 8 of 35AD

(i) setting up and operating cols chain facility

(ii) setting up and operating a warehousing facility for storage of agricultural produce

(v) building and operating , anywhere in India, hospitals with atleast 100 beds of patients

(vii) developing and building a housing project under a scheme for affordable housing framed by CG or SG and notified by board

(viii) production of fertilizer in India

For the other sub clauses of sub section 8 of section 35AD , namely , (iii), (iv), (vi) , (ix) , (x), (xi), (xii),(xiii),(xiv) , 100 % deduction ia allowable

But w.e.f 1.4.2018 , sub section (1A) OF SECTION 35AD has been omitted by Finance Act 2016 , hence 150% deduction for the above mentioned 5 businesses are removed and in conclusion for all specified business under section 35AD 100% deduction only allowed