Development allowance under sec. 33A-Creation of reserve- Instruction regarding

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..... reserve- Instruction regarding. Attention is invited to section 33A of the Income-tax Act, 1961, which provides for the grant of deduction by way of development allowance of a certain percentage of expenses incurred on planting of tea bushes on any land in India owned by an assessee who carries on the business of growing and manufacturing tea. Sub-section (3) of section 33A of the Income-tax Ac .....

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..... wed". It is argued that since only 40% of the income of a tea company is chargeable to tax, the actual allowance on account of development allowance is only 40% of the amount calculated on the basis of specified percentage of the cost of planting tea bushes. 3. A similar question had been examined with regard to the quantum of reserve to be created for claiming deduction on account of developmen .....

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..... tage of the cost of planting tea bushes. 4. The above clarification may please be brought to the notice of all the officers working in your charge. Yours faithfully, (Sd.) P. Saxena, Secretary, Central Board of Direct Taxes. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - .....

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