- 1 Expenditure on Agriculture Extension Project Section 35CCC Rule 6AAD/Rule 6AAE
- 2 Expenditure on skill development project 35CCD
- 3 Amortization of certain Preliminary Expenses Section 35D
- 4 Amortization of Expenditure under Voluntary Retirement Scheme Section 35DDA
Expenditure on Agriculture Extension Project Section 35CCC Rule 6AAD/Rule 6AAE
If any assessee has incurred any expenditure on agriculture extension project, the assessee shal be allowed to debit 1.5 times of the expenditure incurred.Expenditure on Land and building is not allowed
Expenditure on skill development project 35CCD
If any company has incurred expenditure on skill development project, company shall be allowed to debit 1.5 times of expenditure incurred but expenditure incurred on land or building is not allowed.
Amortization of certain Preliminary Expenses Section 35D
Expenditure incurred before commencement of business shall be called preliminary expenses and shall be allowed to be debited in 5 annual equal installment after commencement of business and such expenses are allowed to an Indian company and also to resident assessee i.e it is not allowed to non resident and to foreign company.
Only the notified expenditure incurred before commencement of business shall be allowed and such expenses may be
- Expenditure in connection with (a) preparation of feasibility reports (b) Preparation of project report (c) conducting market suryey necessary the business of the assessee (d) Engineering services relating to the business of the assessee.
- Legal charges for drafting any agreement between the assessee and any other person for purpose of the business of the assessee.
- Where the assessee is a company, also expenditure (a) By way of Legal charges for drafting the Memorandum and Articles of Association of the Company. (b) On printing of the Memorandum and Articles of Association (c) By way of fees for registering the company under the provision of the Companies Act. (d) In connection with the Issue of shares or Debenture of the company, being underwriting commission, brokerage and charges for drafting, tyoing, printing and advertisement of the prospectus.
Maximum Expenditure which is allowed shall be upto 5% of the project cost but an Indian company has the option to take 5% of the capital employed.
Cost of Project and Capital Employed
Cost of project means in case of new business the actual cost of the fixed assets being land, building,plant,machinery,furniture,fitting etc as on the last day of the year in which the assessee has commenced the business.
Capital Employed means in case of new business, the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the previous year in which the business of the company commences. In case of exsisting business in there is extension of such business, expenses incurred in connection with such extension shall also be allowed in the similar manner as in case of new business and project cost and capital employed shall be taken into consideration relating to extension of business.
Amortization of Expenditure under Voluntary Retirement Scheme Section 35DDA
If Employer gives voluntary retirement to the employee and pay some amount related to voluntary retirement, Such amount will be deducted in profit and loss in 5 equal installment.