RPL Infra Limited, incorporated on 01.04.2023 and entered into an agreement on July 1, 2023 with NHAI, a PSU of the Central Government and started the operation and maintenance of highways and tolls situated in the state

Answer 6(b) (i) Computation of Amount of deductions under 35AD for the Assessment Year 2024-25: Capital Expenditure Incurred Amount Plant & Machinery Indigenous (25,00,000 * 75%) = 18,75,000 18,75,000 Imported (25,00,000 - 18,75,000 = 6,25,000) 6,25,000 Note: Any used P&M is allowed to be transferred to specified business upto 20% of total value of P&M, but it does not include the machines used outside India. Further, Any machinery or plant which was used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if- i. such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India; ii. such machinery or plant is imported into India from any country outside India; and iii. no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of installation of the machinery or plant by the assessee; So, ₹6,25,000 Plant and Machinery (Excavator machine) which was imported from Dubai is also eligible for deduction u/s 35AD. Assembly & Installation Cost of above 1,15,000 (1,30,000 - 15,000 = 1,15,000) Note: The payment of ₹15,000 (exceed ₹10,000) to a laborer was made by other than an account payee cheque, bank draft, ECS, so will be excluded from claim. Office appliances including computers and computer software 4,60,000 Note: This expenditure deemed to be entirely devoted to this business shall be eligible for deduction. Capital Work in progress (Construction of Office Building) Nil Note: Not eligible since the amount has not yet been capitalized in the books of the company. Total amount eligible for deduction under section 35AD 30,75,000