Give answer as per provisions contained under the Income-tax Act, 1961 in respect of each of the following questions for the assessment year as 2018-19: [Only the end answer is needed, no working is required] DAF Pvt. Lt
CS Executive · Tax Laws · PYQS · December 2018
Give answer as per provisions contained under the Income-tax Act, 1961 in respect of each of the following questions for the assessment year as 2018-19: [Only the end answer is needed, no working is required] DAF Pvt. Ltd. fulfilling all the conditions specified in section 35AD of the Income-tax Act, 1961 has incurred capital expenditure of ₹ 50 lakh on purchase of land, ₹ 100 lakh (₹ 90 lakh by cheque and ₹ 10 lakh in cash) on construction of building and ₹ 30 lakh on plant & machinery during the previous year for setting up and operating a warehousing facility for storage of sugar. The warehouse become operational on 1st March, 2018. How much amount of deduction can the company claim for such capital expenditure as per section 35AD ?
Answer & Explanation:
The amount of deduction that can be claimed by the company for such capital expenditure as per section 35AD of the Income Tax Act, 1961 is ₹120 Lakhs (i.e. ₹90 lakhs for construction of building and ₹30 lakh on plant and machinery).
Topics: Income Tax Act, 1961
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