Income-tax Act, 2025

DEDUCTION FOR TEA DEVELOPMENT ACCOUNT, COFFEE DEVELOPMENT ACCOUNT AND RUBBER DEVELOPMENT ACCOUNT FOR COMPUTING INCOME UNDER THE HEAD PROFITS AND GAINS OF BUSINESS OR PROFESSION - Schedule IX

SCHEDULE IX

[See section 48]

DEDUCTION FOR TEA DEVELOPMENT ACCOUNT, COFFEE DEVELOPMENT ACCOUNT AND RUBBER DEVELOPMENT ACCOUNT FOR COMPUTING INCOME UNDER THE HEAD "PROFITS AND GAINS OF BUSINESS OR PROFESSION"

Quantum of deduction.

1. (1) An assessee shall be allowed deduction of,--

(a) the amount or aggregate of the amounts deposited by the assessee in the account as specified in paragraph 2; or

(b) 40% of the profits of such business computed under the head "Profits and gains of business or profession" before making any deduction under this paragraph,

whichever is less.

(2) The deduction shall be allowed before allowing set off of loss, if any, brought forward from earlier tax years as per section 112.

Conditions for claiming deduction.

2. (1) The deduction under paragraph 1 shall be allowed if the assessee--

(a) is carrying on the business of growing and manufacturing tea or coffee or rubber in India during the tax year;

(b) has, before the expiry of six months from the end of the tax year or before the due date of furnishing the return of his income, whichever is earlier, deposited any amount in the specified account being,

(i) a special account maintained with the National Bank in accordance with, and for the purposes specified in the special scheme; or

(ii) a deposit account in accordance with, and for the purposes specified in the deposit scheme; and

(c) gets the accounts of such business for the relevant tax year audited by an accountant before the specified date referred to in section 63 and furnishes the audit report, in such form and manner as may be prescribed and verified by such accountant, by that date.

(2) Where the assessee is required, by or under any other law, to get his accounts audited, then it shall be sufficient compliance of sub-paragraph (1)(c), if such assessee

(a) gets the accounts of such .... To read the full section download the app from Google Play store