Provision for construction of office at a future date.

There is no specific percentage of income that a company can set aside in a provision for construction account. The amount of provision that can be made would depend on various factors such as the estimated cost of construction, the financial position of the company, and the provisions of the Companies Act, 2013.

If the provision for construction account is created to cover future expenses related to the construction of an office, and the expenses are expected to be incurred within the next financial year, then the provision may be allowed as a deductible expense under the provisions of Section 37(1) of the Income Tax Act.

However, if the provision for construction account is created to cover future expenses that are not expected to be incurred within the next financial year, or if the provision is created for any other purpose, then the tax treatment may differ, and it is recommended that you seek professional advice from a qualified tax consultant or chartered accountant.