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TMI BlogMeasures to phase out deductions- DIRECT TAXESX X X X Extracts X X X X X X X X Extracts X X X X ..... sed deductions will be phased out for both corporate and non-corporate tax payers. (b) The provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the Act will not be extended. (c) In case of tax incentives with no terminal date, a sunset date of 31.3.2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the Act. (d) There will be no weighted deduction with effect from 01. 04.2017. Based on the above guiding principles and taking into account the response of the stakeholders on the proposed phasing out plan, the following incentives under the Act are proposed to be phased out in the manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intenance of an infrastructure facility (80-IA) b) development of special economic zone (80-IAB) c) production of mineral oil and natural gas [80-IB(9)] 100 per cent profit linked deductions for specified period on eligible business carried on by industrial undertakings or enterprises referred in section 80IA; 80IAB, and 80IB. No deduction shall be available if the specified activity commences on or after 1st day April, 2017. (i.e from previous year 2017-18 and subsequent years). Table 2 : Proposed Phase out plan of incentives (Accelerated Depreciation/Weighted Deduction) available under the Act. Sl. No Section/ Incentive currently available in the Act Proposed phase out measures/ Amendment 1 32 read with rule 5 of Income-tax Rules, 1962- A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt with effect from 01.04.2017 (i.e. from previous year 2017-18 and subsequent years). 4 35(1)(iii)- Expenditure on scientific research. Weighted deduction from the business income to the extent of 125 per cent of contribution to an approved research association or university or college or other institution to be used for research in social science or statistical research. Deduction shall be restricted to 100 per cent with effect from 01.04.2017 (i.e. from previous year 2017-18 and subsequent years). 5 35(2AA)- Expenditure on scientific research. Weighted deduction from the business income to the extent of 200 per cent of any sum paid to a National Laboratory or a university or an Indian Institute of Technology or a specified person for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject, production of fertilizer, deduction shall be restricted to 100 per cent of capital expenditure w.e.f. 01.4.2017 (i.e. from previous year 2017-18 onwards). 8. 35CCC- Expenditure on notified agricultural extension project. Weighted deduction of 150 per cent of expenditure incurred on notified agricultural extension project. Deduction shall be restricted to 100 per cent from 1.4.2017 (i.e from previous year 2017-18 onwards). These amendments mentioned in table 2 will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years. [Clause 8, 15, 17, 18, 19, 20, 39, 40 42] - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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