Para 9 - Utilisation of the amounts for the purposes of section 32AB - Investment Deposit Account Scheme, 1986

Utilisation of the amounts for the purposes of section 32AB. 9. (1) An assessee, whose total income-includes income chargeable to tax under the head "Profits and gains of business or profes sion", may utilise— (a) the whole or any part of the amount deposited by him in a deposit account under clause (a) of sub-section (1) of section 32AB of the Income-tax Act, or (b) any amount out of such income, without depositing the same under clause (a) of sub-section (1) of section 32AB of the Income-tax Act, in accordance with this Scheme, for any of the following pur poses, namely:— (i) purchase of new ship or new aircraft or new machinery or new plant for the purposes of the business or profession carried on by the depositor; (ii) purchase of new computers to be installed either in the office or at a place where the depositor carries on business or profession; (iii) repayment of the principal amount of term loans contracted after the 31st March, 1986, and taken for a period of three years or more from a financial corporation which is engaged in providing long-term finance for industrial development in India or from a scheduled bank or from any such other institution as the Central Government may, by notification in the Official Gazette, specify in this behalf. (2)(a) Withdrawal from the deposit may be made by a depositor not more than once in every three calendar months, by making an application in Form 'D': Provided that no such application shall be granted unless the depositor has, for a minimum period of one year prior to the date of such withdrawal, in his account a minimum balance of an amount which is not less than the amount to be withdrawn. (b) On receipt of the request for withdrawal, the deposit office shall, as soon as may be, pay the amount to the depositor through a credit to the designated account. (c) The amount credited to the designated account under clause (b) shall be utilised by the depositor within fifteen working days from the date of such credit for the purpose for which the amount has been withdrawn; and the amount or any part thereof which has not been so utilised shall be refunded to the Develop ment Bank and on such refund, the amount or part thereof, as the case may be, shall be treated as a fresh deposit in the account for the purposes of withdrawal under clause (a) of sub-paragraph (2) of paragraph 9 above.