Section 8 - Amendment of section 33A - Finance Act, 1966

8. Amendment of section 33A In section 33A of the Income-tax Act,- (a) in sub-section (1),- (i) in clause (i), for the words forty per cent. , the words fifty per cent. shall be substituted; (ii) in clause (ii), for the words twenty per cent. , the words thirty per cent. shall be substituted; (iii) for the words be allowed as a deduction in respect of the third succeeding previous year next following the previous year in which the land is prepared for planting or replanting, as the case may be: , the following shall be substituted, namely:- be allowed as a deduction in the manner specified hereunder, namely:- (a) the amount of the development allowance shall, in the first instance, be computed with reference to that portion of the actual cost of planting which is incurred during the previous year in which the land is prepared or planting or replanting, as the case may be, and in the previous year next following, and the amount so computed shall be allowed as a deduction in respect of such previous year next following; and (b) thereafter, the development allowance shall again be computed with reference to the actual cost of planting, and if the sum so computed exceeds the amount allowed as a deduction under clause (a), the amount of the excess shall be allowed as a deduction in respect of the third succeeding previous year next following the previous year in which the land has been prepared for planting or replanting, as the case may be: ; (b) in sub-section (2),- (i) for the words the third succeeding previous year next following the previous year in which the land has been prepared , the words, brackets and figure the previous year in respect of which the deduction is required to be allowed under sub-section (1) shall be substituted; (ii) for the words, brackets and figure calculated at the rates specified in sub-section (1) , the words, brackets and figure calculated at the rates and in the manner specified in sub-section (1) shall be substituted.