Payment to Associations and Institutions for carrying out Rural Development Programmes [Section 35CCA]
Under Section 35CCA, any assessee who is carrying on a business/profession shall be allowed a deduction of the amount of the expenditure incurred by way of payment of any sum to the following :
any association or institution to be used for carrying out any programme of rural development approved before March 1, 1983;
an association or institution which has its object the training of persons for implementation of a rural development programme approved before March 1, 1983;
the National Fund for Rural Development; and
notified National Urban Poverty Eradication Fund.
Deduction under this section shall be allowed only if following conditions are also satisfied:
The assessee has obtained the approval of the prescribed authority in respect of such programme before the 1st day of March 1983;
Such programme involves work by way of construction of any building or other structure Whether for use as dispensary, school, training or welfare centre, workshop or any other purpose or the laying of any road or the construction or boring of a well or tubewell or the installation of any plant and machinery and such work has commenced before the 1st day of March 1983;
The expenditure on such programme is incurred in a case where the approval of the prescribed authority in respect of such programme has been granted for a specified period before the expiry of that period and any other case before the 1st day of March 1984;
The assessee furnishes, alongwith the return of income for the assessment year for which the deduction is claimed, a statement of such expenditure in the prescribed form duly signed and verified by Chartered Accountant; and setting forth such particulars as may be prescribed.
This benefit will be available only if contribution is made to an association or institution which is approved in this behalf by prescribed authority.
This deduction will also be available on any amount paid to a rural development fund set up and notified by the Central Government in this behalf.
Topics...on ‘Profits and Gains of Business or Profession’
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications