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Sec 35AD of I.T Act

sunny garg (student) (167 Points)

08 February 2018

I'm Ca final student
i purshased DT summary book of Vinod Gupta Sir
Under sec 35AD Deduction was 100% for specified buisness but earlier there was 2 rate of deduction
i.e 150% for Spec. Bus. essential for indian economy
and 100% for spec. Bus.
Now in book only given 100 % for all
But in illus in summary book solved as per 150% rate of deduction
so i confused what the correct .

what the rate of deduction under sec 35AD as per FA 2017.

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7 Replies

Pallav Bansal (CA Final) (372 Points)
Replied 08 February 2018

From AY 2018-19 (FA 2017) there is only one rate under section 35AD and that rate is 100%..

Pallav Bansal
(Thumbs up👍 if I resolved your query)

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Pallav Bansal (CA Final) (372 Points)
Replied 08 February 2018

VG Sir forgot to amend the illustration..

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shilpi (student) (780 Points)
Replied 08 February 2018

In our IPC module ,rate of deduction is 100%of capital expenditure (Asst year 2018-19 ).This is effected by omission of sub section(1A) providing for such weighted deduction.

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divyakrishnan (Chartered Accountant) (92 Points)
Replied 08 February 2018

Untill FY 2016-17, As per Section 35(AD) (1A), 150% of deduction is allowed for the businesses as mentioned in following sub clauses of sub section 8 of 35AD

(i) setting up and operating cols chain facility

(ii) setting up and operating a warehousing facility for storage of agricultural produce

(v) building and operating , anywhere in India, hospitals with atleast 100 beds of patients

(vii) developing and building a housing project under a scheme for affordable housing framed by CG or SG and notified by board

(viii) production of fertilizer in India

For the other sub clauses of sub section 8 of section 35AD , namely , (iii), (iv), (vi) , (ix) , (x), (xi), (xii),(xiii),(xiv) , 100 % deduction ia allowable

But w.e.f 1.4.2018 , sub section (1A) OF SECTION 35AD has been omitted by Finance Act 2016 , hence 150% deduction for the above mentioned 5 businesses are removed and in conclusion for all specified business under section 35AD 100% deduction only allowed

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