Insertion of New Sections 44C and 44D

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..... in excess of the amount computed as hereunder, namely :- (a) an amount equal to five per cent. of the adjusted total income; or (b) an amount equal to the average head office expenditure; or (c) the amount of so much of the expenditure in the nature of head office expenditure incurred by the assessee as is attributable to the business or profession of the assessee in India, whichever is the least : Provided that in a case where the adjusted total income of the assessee is a loss, the amount under clause (a) shall be computed at the rate of five per cent. of the average adjusted total income of the assessee. Explanation : For the purposes of this section, - (i) adjusted total income means the total income computed in accordance with the prov .....

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..... chargeable under the head Profits and gains of business or profession in respect of each of the three previous years relevant to the assessment years commencing on the 1st day of April, 1974, the 1st day of April, 1975, and the 1st day of April, 1976, one-third of the aggregate amount of the expenditure so allowed; (b) in a case where such expenditure has been so allowed only in respect of two of the aforesaid three previous years, one-half of the aggregate amount of the expenditure so allowed; (c) in a case where such expenditure has been so allowed only in respect of one of the aforesaid three previous years, the amount of the expenditure so allowed; (iv) head office expenditure means executive and general administration expenditure incu .....

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..... , drawing or specification relating to any patent, invention, model, design, secret formula or process or trade mark or similar property; (b) no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing the income by way of royalty or fees for technical services received from an Indian concern in pursuance of an agreement made by the foreign company with the Indian concern after the 31st day of March, 1976. Explanation : For the purposes of this section, - (a) fees for technical services shall have the same meaning as in Explanation to clause (vii) of sub-section (1) of section 9; (b) foreign company shall have the same meaning as in section 80B; (c) royalty shall have the same meaning .....

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