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What is Conditions for depreciation allowance and development rebate? Section 34 of Income Tax Act 1961

Conditions for depreciation allowance and development rebate is defined under section 34 of Income Tax Act 1961. Provisions under this section is:

Section 34 of Income Tax Act "Conditions for depreciation allowance and development rebate"

34. (1) [***]
(2) [***]
(3)(a) The deduction referred to in section 33 shall not be allowed unless an amount equal to seventy-five per cent of the development rebate to be actually allowed is debited to the profit and loss account of any previous year in respect of which the deduction is to be allowed under sub-section (2) of that section or any earlier previous year (being a previous year not earlier than the year in which the ship was acquired or the machinery or plant was installed or the ship, machinery or plant was first put to use) and credited to a reserve account to be utilised by the assessee during a period of eight years next following for the purposes of the business of the undertaking, other than-

 

(i) for distribution by way of dividends or profits ; or

(ii) for remittance outside India as profits or for the creation of any asset outside India :

 

Provided that this clause shall not apply where the assessee is a company, being a licensee within the meaning of the Electricity (Supply) Act, 1948 (54 of 1948), or where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 :

Provided further that where a ship has been acquired after the 28th day of January, 1966, this clause shall have effect in respect of such ship as if for the words "seventy-five", the word "fifty" had been substituted.

Explanation.-[Omitted by the Finance Act, 1990, w.r.e.f. 1-4-1962. Earlier, it was inserted by the Finance Act, 1966, w.r.e.f. 1-4-1962.]

(b) If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33 or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of 1922), in respect of that ship, machinery or plant shall be deemed to have been wrongly made for the purposes of this Act, and the provisions of sub-section (5) of section 155 shall apply accordingly :

Provided that this clause shall not apply-

(i) where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 ; or

(ii) where the ship, machinery or plant is sold or otherwise transferred by the assessee to the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; or

(iii) where the sale or transfer of the ship, machinery or plant is made in connection with the amalgamation or succession, referred to in sub-section (3) or sub-section (4) of section 33.

Income Tax Act 1961

What is Development rebate? Section 33 of Income Tax Act 1961

What is Development allowance? Section 33A of Income Tax Act 1961

What is Tea development account, coffee development account and rubber development account? Section 33AB of Income Tax Act 1961

What is Site Restoration Fund? Section 33ABA of Income Tax Act 1961

What is Reserves for shipping business? Section 33AC of Income Tax Act 1961

What is Rehabilitation allowance? Section 33B of Income Tax Act 1961

What is Conditions for depreciation allowance and development rebate? Section 34 of Income Tax Act 1961

What is Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies? Section 34A of Income Tax Act 1961

What is Expenditure on scientific research? Section 35 of Income Tax Act 1961

What is Expenditure on acquisition of patent rights or copyrights? Section 35A of Income Tax Act 1961

What is Expenditure on know-how? Section 35AB of Income Tax Act 1961

What is Expenditure for obtaining licence to operate telecommunication services? Section 35ABB of Income Tax Act 1961

What is Expenditure on eligible projects or schemes? Section 35AC of Income Tax Act 1961

What is Deduction in respect of expenditure on specified business? Section 35AD of Income Tax Act 1961

What is Expenditure by way of payment to associations and institutions for carrying out rural development programmes? Section 35CCA of Income Tax Act 1961

What is Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources? Section 35CCB of Income Tax Act 1961

What is Expenditure on agricultural extension project? What is Expenditure on skill development project? Section 35CCC and 35CCD of Income Tax Act 1961

What is Amortisation of certain preliminary expenses? Section 35D of Income Tax Act 1961

What is Amortisation of expenditure in case of amalgamation or demerger? What is Amortisation of expenditure incurred under voluntary retirement scheme? Section 35DD and 35DDA of Income Tax Act 1961

What is Deduction for expenditure on prospecting, etc., for certain minerals? Section 35E of Income Tax Act 1961

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