sec.35 AD INCOME TAX

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RANJAN GUPTA

RANJAN GUPTA (Querist)
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17 July 2011 WHY THIS SECTION DOEN NOT GIVE DEDUCTION OF EXPENSES OF LAND GOODWILL & FINANCIAN ASSETS?

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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18 July 2011 It is specifically mentioned in the section that expenditure on land goodwill and financial instrument are not allowed. Even in normal cases, there is no deduction in respect of land. deduction in respect of Goodwill and financial instrument i think, one can claim deduction U/s 32.

CA Navin Jain

CA Navin Jain (Expert)
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18 July 2011 Land, Goodwill and Financial Instruments are specifically kept out of purview of Section 35AD. This is a statutory provision under the Income Tax Act, 1961. One cannot question why a particular item is excluded or included?? So, it is better not to divert your energy in these things, dear. (In good spirit)

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 July 2011 I agree with the experts. You should know the need of 35AC it is for exemption of income and not for investment.

CA Navin Jain

CA Navin Jain (Expert)
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19 July 2011 With all due regards to Mr. Agarwal, the intention of the Parliament behind introducing Sec 35AD was to provide an Investment-Linked Deduction..
Sec 35AD encourages enterpreneurs to put their huge stakes in Specified Business with tax benefit.

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