Amendment of
section 35D.
in clause (a), for the proviso, the following proviso shall be
substituted with effect from the 1st day of April, 2024, namely:–
containing the particulars of expenditure specified in this
clause within such period, to such income-tax authority, in
such form and manner, as may be prescribed.”.
(2) The expenditure referred to in sub-section (1) shall be the expenditure specified in any one or more of the following clauses, namely :—
(a) expenditure in connection with—
(i) preparation of feasibility report;
(ii) preparation of project report;
(iii) conducting market survey or any other survey necessary for the business of the assessee;
(iv) engineering services relating to the business of the assessee :
Provided that the work in connection with the preparation of the feasibility report or the project report or the conducting of market survey or of any other survey or the engineering services referred to in this clause is carried out by the assessee himself or by a concern which is for the time being approved in this behalf by the Board;
Analysis:
Amendment of section 35D of the Income-tax Act, in sub-section (2), simplify the process of claiming deduction for pre operative expenses. Earlier the assesses was required to prepare feasibility report , project report and market survey through approved agency which was extra compliance burden on the businesses now government give relaxation to businesses.
In order to get amortization of preliminary expenses as per income tax laws assesses will need to submit simple statement containing all details regarding expenditure incurred.
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