Purchase of tea gardens for growing and manufacturing tea in India.

As per the provisions of section 33AB of the Income Tax Act, 1961, all assessee who are engaged in the business of growing and manufacturing tea/coffee/rubber in India will be allowed a deduction of 40% of the profits of such business subject to the amount as deposited with NABARD or in the Deposit Account as per scheme framed by Tea, Coffee or Rubber Boards. Here assuming all other mandatory conditions being satisfied by the entity, the amount of deduction will be 40% of ₹ 5 Crore (100 Crore*5%) every year during next 10 years. So total deductions come to 2 Crore*10 years=₹ 20 crore. Advise: As per the analysis of all three deductions as above, the summery of deductions during 10 years is as under: Start up: ₹ 15 Crore Cold chain facility: ₹ 50 Crore Tea Garden: ₹ 20 Crore The business plan of Set up a Cold chain facility for refrigeration, storage and transportation of dairy product will be the best tax saving plan for the entity.