APR Constructions Limited - Saffron Capital

STATEMENT OF TAX BENEFITS
The following possible tax benefits shall be available to the Company and the prospective shareholders under the
Current Direct Tax Laws. Several of these benefits are dependent on the Company or its Shareholders fulfilling the
conditions prescribed under the relevant tax laws. Hence, the ability of the Company or its shareholders to derive the
tax benefits is dependent upon the fulfilling such conditions.
I TO THE COMPANY
SPECIAL TAX BENEFITS
Nil
UNDER THE INCOME TAX ACT
1. In accordance with section 10(34), dividend income (referred to in section 115-O) received by the company will
be exempt from tax.
2. In accordance with section 32(1)(ii), the company can claim depreciation on specified tangible (being Buildings,
Plant & Machinery, Computer and Vehicles) and intangible assets (being Knowhow, Copyrights, Patents,
Trademarks, Licenses, Franchises or any other business or commercial rights of similar nature acquired on or
after 1st April, 1998) owned by it and used for the purpose of its business. In case of any new plant and
machinery (other than ships and aircraft) that will be acquired and installed by the company engaged in the
business of manufacture or production of any article or thing, the company will be entitled to a further sum equal
to twenty per cent of the actual cost of such machinery or plant subject to conditions specified in section 32 of the
Act.
3. In accordance with section 35D, the company is eligible for deduction in respect of specified preliminary
expenditure incurred by the company in connection with extension of its undertaking or in connection with
setting up a new unit for an amount equal to 1/5th of such expenses for each of the five successive previous years
beginning with the previous year in which the extension of the undertaking is completed or the new unit
commences production or operation, subject to conditions and limits specified in that section.
4. In accordance with section 35DDA, the company is eligible for deduction in respect of payments made to its
employees in connection with their voluntary retirement for an amount equal to 1/5th of the amount so paid for
that previous year, and the balance in four equal installments for each of the succeeding previous years subject to
conditions specified in that section.
5. In accordance with section 35, the company is eligible for –
a. Deduction in respect of any expenditure (not being in the nature of capital expenditure) on scientific research
related to the business subject to conditions specified in that section.
b. As per section 35(2AA) a deduction of 125% shall be allowed as a deduction of the sum paid by the
company, to a National Laboratory or a University or an Indian Institute of Technology or a specified person
as specified in this section with a specific direction that the sum shall be used for scientific research
undertaken under a programme approved in this behalf by the specified authority subject to conditions
specified in that section.
6. In accordance with section 80-IA, the company can claim, subject to fulfilment of certain conditions, deduction
of an amount equal to hundred percent of the profits and gains derived from the business of, development of
Infrastructure facilities including construction of roads, bridges, rail systems, highways, irrigation projects, ports
etc, for Ten consecutive assessment years out of Twenty years beginning from the year in which the company
develops such facility.
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