Doing Business in India - RSM Austria

Section
Details of Exemption / Deduction
Period
Quantum
of Deduction
33AB Tea / Rubber/ Coffee development allowance
Deduction is available to assessee
engaged in the business of growing and
manufacturing tea, coffee or rubber in
India.
Deduction equal to an amount deposited in
a special account with the National Bank
for Agriculture and Rural Development
('NABARD') or any Deposit Account
opened by the assessee and approved by
the Tea Board or Coffee Board or Rubber
Board from the profits is allowed.
The amount has to be deposited within
specified period from the end of the
financial year or before furnishing the
return of income, whichever is earlier.
The amount has to be utilised by the
assessee for specified purposes.
NA Upto 40%
of profits
or amount
deposited
in special
account,
whichever
is less
Section
32
35/35
(2AB)
Eligibility Criteria, Quantum and Period of Deduction
Additional Depreciation
General rate of depreciation for plant and machinery is 15% from FY 2005-
2006.
Additional depreciation of 20% is allowed for new plant and machinery
acquired and installed after 31 March 2005. Additional Depreciation is
available only in the year in which such machinery is first put to use.
Commercial vehicles acquired on or after 1 January 2009 but before 1 October
2009 and put to use before 1 October 2009 will be eligible for depreciation @
50%.
Expenditure on Scientific Research
Where any capital expenditure (other than expenditure on land and building)
is incurred on scientific research related to the business carried on by the
assessee, 100% of such expenditure can be claimed as deduction.
Where any expenditure (other than expenditure on cost of land and building),
on in-house research and development facility, as approved by the prescribed
authority, incurred by the assessee, engaged in the business of manufacture
or production of article or thing except those specified in the Eleventh
Schedule the deduction shall be one and one-half times (150%) of the
expenditure incurred up to 31 March 2012. The Act increased the deduction
from 150% to 200%.
Where amount is paid to a scientific research association, which has its object
of undertaking scientific research or to a university, college or other
institution to be used for scientific research, the deduction shall be one and
one-fourth times (125%) of the amount paid provided that such association,
university, college or institution is approved by the Central Government.
Similar deduction is available for amount paid to approved university, college
or other institution to be used for research in social science or statistical
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DOING BUSINESS IN INDIA