www.Aaptaxlaw.com
 
 
 

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

Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies is defined under section 34A of Income Tax Act 1961. Provisions under this section is:

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

34A. (1) In computing the profits and gains of the business of a domestic company in relation to the previous year relevant to the assessment year commencing on the 1st day of April, 1992, where effect is to be given to the unabsorbed depreciation allowance or unabsorbed investment allowance or both in relation to any previous year relevant to the assessment year commencing on or before the 1st day of April, 1991, the deduction shall be restricted to two-third of such allowance or allowances and the balance,-

(a) where it relates to depreciation allowance, be added to the depreciation allowance for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 and be deemed to be part of that allowance or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year and so on for the succeeding previous years ;

 

(b) where it relates to investment allowance, be carried forward to the assessment year commencing on the 1st day of April, 1993 and the balance of the investment allowance, if any, still outstanding shall be carried forward to the following assessment year and where the period of eight years has expired before the portion of such balance is adjusted, the said period shall be extended beyond eight years till such time the portion of the said balance is absorbed in the profits and gains of the business of the domestic company.

(2) For the assessment year commencing on the 1st day of April, 1992, the provisions of sub-section (2) of section 32 and sub-section (3) of section 32A shall apply to the extent such provisions are not inconsistent with the provisions of sub-section (1) of this section.

(3) Nothing contained in sub-section (1) shall apply where the amount of unabsorbed depreciation allowance or of the unabsorbed investment allowance, as the case may be, or the aggregate amount of such allowances in the case of a domestic company is less than one lakh rupees.

(4) Nothing contained in sections 234B and 234C shall apply to any shortfall in the payment of any tax due on the assessed tax or, as the case may be, returned income where such shortfall is on account of restricting the amount of depreciation allowance or investment allowance under this section and the assessee has paid the amount of shortfall before furnishing the return of income under sub-section (1) of section 139.

 

   
 

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

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap