Expenditure on Eligible Projects or Scheme - Section 35AC (Upto AY 2017-18) - Income Tax - Ready Reckoner - Income Tax

Expenditure on Eligible Projects or Scheme Section 35AC Deduction is available for promoting social and economic welfare or uplift of people. However, No deduction under this section shall be allowed in respect of any AY commencing on or after 1-4-2018. Who can claim deduction Assessee To whom the payment should be made Direct expenditure on eligible Project A company Deduction is available if the tax payer incurs any expenditure by way of payment of any sum to a public sector company or a local authority or to an association or institution approved by the National Committee for carrying out any eligible project or scheme. A company can also directly incur expenditure in respect of eligible project and claim the same as deduction. A person other than a company Same as above Direct expenditure is not permitted. Certificate from the receipient The claim for deduction should be supported by an audit certificate obtained from the Public Sector Company, local authority or approved association or institution to whom the payment is made in Form. No 58A , or from the chartered accountant in cases where the claim is in respect of expenditure directly incurred by a company on an eligible project or scheme in Form No. 58B alongwith the return of income. Eligible project or scheme means such project or scheme for promoting the social and economic welfare of, or the upliftment of the public. Withdrawal of Approval The National Committee may withdraw the approval if the project is not carried out in accordance with the approved conditions. To withdraw a project National Committee should provide an opportunity of being heard to the aggrieved organisation. If a deduction is claimed and allowed under Section 35AC , the same is not be allowed as deduction under any other provisions of the Act.