25/01/2019
An assessee can claim deduction under ' Section 33AB if certain conditions are satisfied:
1. It must be engaged in the business of growing and manufacturing tea in India (or coffee or rubber from the assessment year 2004-05).
2. It must make the following deposit (hereinafter referred to as “special account")
a. deposit with National Bank for Agriculture and Rural Development (hereinafter referred to as “NABARD") any amount (or amounts) in an account maintained by the assessee with that bank in accordance with and for the purpose specified in a scheme approved by the Tea Board or Coffee Board or Rubber Board; or
b. deposit any amount in the Deposit Account opened by the assessee in accordance with, and for the purposes specified in, a scheme framed by the Tea Board or Coffee Board or Rubber Board with the previous approval of the Central Government.
3. The aforesaid amount shall be deposited within 6 months from the end of the previous year or before the due date of furnishing the return of income, whichever is earlier.
4. The accounts of the taxpayer should be audited by a chartered accountant and the report of the auditor in Form No. 3AC is to be filed along with the return of the relevant assessment year. In cases where the accounts of the taxpayer are required to be audited under any other law, e.g., under the Companies Act, it would be sufficient if the accounts are audited under that law and the audit report as per that law is furnishch with the return along with a further report in Form No. 3AC for the purposes of this provision.
AMOUNT OF DEDUCTION :- Amount of deduction is :
a. a sum equal to amounts deposited ; or
b. 40 per cent of the profit of such business computed under the head “Profits and gains of business or profession” before making any deduction under section 33AB and before adjusting brought forwarc busmess loss under section 72,
Whichever is less.
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