Section 44DB - Special provision for computing deductions in the case of business reorganisation of Co-operative banks - Income Tax - Ready Reckoner - Income Tax

Section 44DB : Special provision for computing deductions in the case of business reorganisation of Co-operative banks Section 44DB provides method and quantum of claiming deduction under section 32 (Depreciation), 35D (Amortisation of certain preliminary expenses), 35DD (Amortisation of expenses in case of amalgamation or demerger) and 35DDA (Amortisation of expenditure incurred under voluntary retirement scheme) in the hands of amalgamating/ demerged co-operative bank and amalgamated/ resulted co-operative bank. In the year in which Amalgamation or Demerger takes place In the year in which change of ownership takes place, deduction under section 32 , 35D , 35DD and 35DDA shall be calculated as under (i) The amount of deduction allowable to the predecessor co-operative bank under section 32 , section 35D , section 35DD or section 35DDA shall be determined in accordance with the formula where, A = the amount of deduction allowable to the predecessor co-operative bank if the business reorganisation had not taken place; B = the number of days comprised in the period beginning with the 1st day of the financial year and ending on the day immediately preceding the date of business reorganisation; and C = the total number of days in the financial year in which the business reorganisation has taken place. (ii) The amount of deduction allowable to the successor co-operative bank (or to the converted banking company) under section 32 , section 35D , section 35DD or section 35DDA shall be determined in accordance with the formula where A = the amount of deduction allowable to the predecessor co-operative bank if the business reorganisation had not taken place; B = the number of days comprised in the period beginning with the date of business reorganisation and ending on the last day of the financial year; and C = the total number of days in the financial year in which the business reorganisation has taken place. The provisions of section 35D , section 35DD or section 35DDA shall, in a case where an undertaking of the predecessor co-operative bank entitled to the deduction under the said section is transferred before the expiry of the period specified therein to a successor co-operative bank [or to a converted banking company] on account of business reorganisation, apply to the successor co-operative bank [or to the converted banking company] in the financial years subsequent to the year of business reorganisation as they would have applied to the predecessor co-operative bank, as if the business reorganisation had not taken place.