If assessee claim deduction u/s 35AD in first year and have b/f loss from it.
In next year also business have huge capital investment.
Then can assessee claim 100% deduction in subsequent years also or deduction is allowed in first year only.
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Deduction u/s 35AD in subsequent years
Replies (5)
claim 100 percent depreciation and carry forward to subsequent years
yes deduction u/s 35AD is allowed in every year whenever capital expenditure is incurred
As per Sec 35AD the deduction in respect of expenditure for specified business allowed in the year in which such expenditure is incurred.
In the subsequent year if the capital expenditure is in the nature specified u/s 35AD then deduction can be claimed fully. Otherwise Deduction u/s 32 is can be claimed.
In the subsequent year if the capital expenditure is in the nature specified u/s 35AD then deduction can be claimed fully. Otherwise Deduction u/s 32 is can be claimed.
but in proviso word 'year in which commences operation ' is used.....
Please read the proviso fully.
The proviso to Section 35AD(1) says that
The deduction in respect of capital expenditure on specified business is allowed in the year of commencement of operation when the expenditure is incurred proior to commencement of operation of business OR the expenditure is capitalised in the books as on the date of commencement of operation.
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