Tax Incentives for Agricultural and Skill Development Projects: Clause 47 of Income Tax Bill, 2025 vs. Sections 35CCC and 35CCD

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..... roduction Clause 47 of the Income Tax Bill, 2025, introduces a provision for the deduction of expenditures incurred on agricultural extension projects and skill development projects. This clause is significant as it aligns with the government's broader policy objectives of promoting sustainable agricultural practices and enhancing workforce skills. The provision is designed to incentivize bus .....

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..... ojects are vital for equipping the workforce with the necessary skills to thrive in a rapidly changing economic landscape. The legislative intent behind this provision is to support the government's broader policy framework aimed at achieving sustainable development goals and enhancing the country's human capital. By providing tax incentives, the government seeks to reduce the financial b .....

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..... g administrative burdens and confusion for taxpayers. Sub-Clause (2) Clause 47(2) stipulates that if a deduction is claimed and allowed under this section for any tax year, no other deduction for the same expenditure can be claimed under any other provision of the Act for the same or any other tax year. This prevents double-dipping and ensures that the tax benefits are appropriately allocated. .....

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..... ensuring that projects meet the required standards to qualify for deductions. This may involve additional administrative efforts to document and report expenditures accurately. Comparative Analysis When compared to Sections 35CCC and 35CCD of the Income-tax Act, 1961, Clause 47 offers a more streamlined approach by consolidating the provisions for agricultural and skill development projects. Wh .....

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..... legislative framework and aligns with broader policy objectives of sustainable development and economic growth. While the provision offers significant benefits, it also requires adherence to guidelines and documentation standards to ensure compliance and prevent misuse. Future reforms may focus on expanding the scope of eligible projects or increasing the deduction rates to further incentivize in .....

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