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Deductions and Allowances under the head 'Profits And Gains Of Business Or Profession' for the Assessment Year 2018-19 & 2019-20

Section

Nature of Deduction

Who can Claim

“Profits And Gains Of Business Or Profession”

30

Rent, rates, taxes, repairs and insurance for buildings

All assessees

31

Repairs and insurance of machinery, plant and furniture

All assessees

32

Depreciation [subject to certain conditions]

All assessees

32AC

Investment allowance

Companies

32AD

Additional investment allowance for setting up industrial undertakings in Andhra Pradesh, Bihar, Telangana and West Bengal

All assessees

33AB

Tea/Coffee/rubber development account

All assessees carrying on the business of growing and manufacturing tea or coffee or rubber in India

33ABA

Site restoration fund

All assessees engaged in the business of the prospecting for, or extraction or production of, petroleum or natural gas or both in India

35

Expenditure on scientific research [subject to certain conditions]

All assessees

35ABA

Expenditure for obtaining right to use spectrum for telecommunication services

Any assessee

35ABB

Expenditure for obtaining licence to operate telecommunication services

All assessees

35AC

Expenditure on eligible projects/schemes

All assessees

35AD

Expenditure on specified business

All assesses (only Indian companies in some cases)

35CCA

Expenditure by way of payment to associations and institutions for carrying out rural development programmes and contribution towards notified Rural Development Funds [subject to certain conditions]

All assessees

35CCC

Weighted deduction for expenditure incurred on  agricultural extension project

All assesses

35CCD

Weighted deduction for expenditure for skill development

Companies

35D

Amortisation of preliminary expenses [deductible in five equal instalments]

Indian companies and resident non-corporate assessees

35DD

Amortisation of expenditure in case of amalgamation or demerger

Indian company

35DDA

Amortisation of expenditure incurred under voluntary retirement scheme

All assessees

35E

Expenditure on prospecting, etc., for certain minerals [deductible in ten equal instalments]

Indian companies and resident non-
corporate assessees engaged in prospecting etc., of any minerals

36(1)(i)

Premium paid in respect of insurance against risk of damage or destruction of stocks/stores

All assessees

36(1)(ia)

Premium paid for insurance on life of cattle owned by a member of a society engaged in supplying milk to the federal milk co-operative society

Federal milk co-operative societies

 

Medical insurance paid by employers

All assessees

36(1)(ii)

Bonus or commission paid to employees

All assessees

36(1)(iii)

Interest on borrowed capital

All assesses

36(1)(iiia)

Discount on zero coupon bond

Infrastructure capital companies/ infrastructure capital funds/public sector funds/public
sector banks

36(1)(iv)

Contributions to recognised provident fund and approved superannuation fund

All assessees

36(1)(v)

Contributions to approved gratuity fund

All assessees

36(1)(va)

Employees’ contributions to staff welfare schemes

All assessees

36(1)(vi)

Write off allowance in respect of animals [subject to certain conditions]

All assessees

36(1)(vii)

Bad debts

All assessees

36(1)(viia)

Provisions for bad and doubtful debts in respect of advances made by rural branches of banks

Scheduled banks and non-scheduled banks

36(1)(viii) / (viiia)

Amount transferred to special reserve

Approved Financial Corporations and public companies of specified nature/scheduled banks/National Housing Bank

36(1)(ix)

Expenditure for promoting family planning amongst employees [deductible in 5 equal annual instalments in the case of capital expenditure]

Companies

36(1)(x)

Contribution towards notified Exchange Risk Administration Fund

Public financial institutions

36(1)(xii)

Expenditure incurred by statutory entities

Statutory entities

36(1)(xiii)

Banking cash transaction tax

Any assessee

36(1)(xv)

Securities transaction tax

All assessees

36(1)(xvi)

Commodities transactions tax

All assessees

36(1)(xvii)

Expenditure incurred for purchase of sugarcane

Co-operative societies

36(1)(xviii)

Marked to market loss

All assessees

37(1)

Any other expenditure [ not being personal or capital expenditure and expenditure mentioned in sections 30 to 36 ] laid out wholly and exclusively for business

All assessees

37(2B)

Expenditure on advertisement

All assessees

 
 
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