Approval of Eligible Projects or Schemes under Section 35AC of the Income Tax Act, 1961- (Press Information Bureau) (19 Aug 2016)
MANU/PIBU/0710/2016
Direct Taxation
Section 35AC of the Income Tax Act 1961, inter alia provides for a deduction in computing the business income of an assessee, of the amount paid by him to a Public Sector company or a local authority or to an association or institution approved by the National Committee for carrying-out any eligible project or scheme.
Section 35AC of the Income Tax Act, as amended by the Finance Act, 2016, provides that no deduction under this Section shall be allowed in respect of any assessment year commencing on or after 1st April, 2018. Accordingly, the benefit of deduction under Section 35AC of the I.T. Act is available only up to previous year ending 31-03-2017 (Assessment Year 2017-18) in respect of the payments made to association or institution already approved by the National Committee for carrying-out any eligible project or scheme. In view of the above, it may be noted that requests received after 31st December, 2016 for the grant/modification/extension of approval beyond 31st March, 2017 under Section 35AC of the Income-Tax Act shall not be considered/entertained by the National Committee.
Tags : PROJECTS APPROVALS
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