TMI BlogDeduction in respect of expenditure on Specified Business - Section 35ADX X X X Extracts X X X X X X X X Extracts X X X X ..... m oil pipeline network for distribution, including storage facilities being an integral part of such network. [Earlier this business was eligible for deduction u/s 80-IA(4)(vi) ] An Indian company or a consortium of Indian companies or an authority/Board/corporation established under any Central or State Act. Should be approved by Petroleum and Natural Gas Regulatory Board and notified by Central Government 4. On or after April 1, 2012 Building and operating, anywhere in India, any hospital with at least 100 beds for patients (applicable from assessment year 2011-2012) Any Person No approval required 5. On or after April 1, 2012 Developing and building a housing project (applicable from the assessment year 2012-2013) Any Person Developing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or a consortium of Indian companies or an authority/Board / Corporation established under any Central or State Act Should be approved by Petroleum and Natural Gas Regulatory Board and notified by the Central Government 2. On or after April 1, 2010 Building and operating, anywhere in India, a hotel of 2 star or above category (applicable from the assessment year 2011-12) Any Person No approval required; however, hotel should be classified by the Central Government as 2 star hotel or above category 3. On or after April 1, 2010 Developing and building a housing project (applicable from the assessment year 2011-2012) Any Person Developing and building the housing projects should be under a scheme for slum re-development or rehabilitation fram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion For Specified Business 100% Deduction shall be allowed in respect of any expenditure of capital nature incurred after the commencement of business wholly and exclusively for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him. Revenue Expenditure will also be allowed as 100% deduction. For Specified Business essential for Indian Economy 150% Deduction shall be allowed in respect of any expenditure of capital nature incurred after the commencement of business wholly and exclusively for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him. Therefore, capital expenditure incurred after the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. and subsequently, while continuing to own the hotel, transfers the operations thereof to another person, the assessee shall be deemed to be carrying on the specified business. Conditions for claiming deductions: New Plant Machinery. Exceptions: i. Imported old Plant Machinery ii. 20% of total Plant Machinery can be old. Not formed by splitting or reconstruction of business already in existence. Assessee in business of laying cross country pipelines should make available for use on common carrier basis: i. 1/3 rd of total pipeline capacity for a natural gas pipeline network ii. 1/4 th of total pipeline capacity for petroleum product pipeline. Deduction u/s 80-IA to 80RRB and section 10AA shall not be allowed under Section 35AD . However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er SICA. Disallowance of Capital expenditure section 35AD on cash payment (inserted by FA 2017, w.e.f. 1-4-2018):- Any expenditure in respect of which the payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque or any banking channel through a bank account, exceeds 10,000/-, then such expenditure shall be disallowed. Note: For the words bank account , the words bank account or through such other electronic mode as may be prescribed shall be substituted with effect from the 1st day of April, 2020. [Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 before it was read as bank account ]. Other Relevant Information- Leasing of Godown for Non-Agriculture purpose - Assessee has leased out 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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