Amendment of section 35AC.
17. In section 35AC of the Income-tax Act, after sub-section (6) and before the Explanation, the following sub-section shall be inserted with effect from the 1st day of April, 2017, namely:-
“(7) No deduction under this section shall be allowed in respect of any assessment year commencing on or after the 1st day of April, 2018.”.
Notes on Clauses:
Clause 17 of the Bill seeks to amend section 35AC of the Income tax Act relating to expenditure on eligible projects or schemes.
The existing provisions of section 35AC, inter alia, provides for deduction for expenditure incurred by way of payment of any sum to a public sector company or a local authority or to an approved association or institution, etc., on certain eligible social development project or a scheme not related to business.
It is proposed to insert a new sub-section (7) in the aforesaid section so as to provide that the deduction under this section shall not apply, in respect of any assessment for the assessment year commencing on the 1st day of April, 2018.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to assessment year 2017-2018 and subsequent year.
