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TMI BlogIncentivizing Investment in Specified Businesses: Clause 46 vs. Section 35ADX X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred in specified businesses. This clause is a part of the broader legislative framework aimed at encouraging investment in certain sectors by offering tax incentives. The provision is designed to align with the government's policy objectives of promoting infrastructure development, healthcare, hospitality, and other key sectors. This article provides a comprehensive analysis of Clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure incurred for a specified business during the tax year. The deduction is available even if the expenditure is incurred before the commencement of operations, provided it is capitalized in the books of account. The clause sets out specific conditions that the business must meet to qualify for the deduction, such as not being set up by splitting or reconstructing an existing business and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have significant implications for businesses operating in the specified sectors. By allowing a full deduction of capital expenditure, the provision reduces the initial financial burden on businesses, making it more attractive to invest in new projects. This can lead to increased economic activity and job creation in the targeted sectors. However, businesses must ensure compliance with the cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46 of the Income Tax Bill, 2025 represents a strategic legislative effort to catalyze investment in key sectors of the economy. By offering tax incentives for capital expenditure, the provision aims to drive growth and development in areas critical to national progress. While it builds on the framework established by Section 35AD of the Income-tax Act, 1961, Clause 46 introduces important updates ..... X X X X Extracts X X X X X X X X Extracts X X X X
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