CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 80A.
23. In section 80A of the Income-tax Act, after sub-section (6) and the Explanation thereto, the following sub-section shall be inserted with effect from the 1st day of April, 2011, namely:—
'(7) Where a deduction under any provision of this Chapter under the heading "C.—Deductions in respect of certain incomes" is claimed and allowed in respect of profits of any of the specified business referred to in clause (c) of sub-section (8) of section 35AD for any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessment year.'.
Notes on Clauses:
Clause 23 of the Bill seeks to amend section 80A of the Income tax Act, relating to deductions to be made in computing total income.
The existing provisions contained in the aforesaid section provide that the aggregate amount of deductions in computing the total income shall not, in any case, exceed the gross total income of the assessee.
It is proposed to amend the aforesaid section so as to insert a new sub-section (7) to provide that where a deduction under any provision of this Chapter under the heading "C.- Deductions in respect of certain incomes" is claimed and allowed in respect of profits of any of the specified business referred to in clause (c) of sub-section (8) of section 35AD for any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessment year.
This amendment will take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-2012 and subsequent years.
