Section 34A of Income Tax Act "Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies"
34A. (1) In computing the profits and gains of the
business of a domestic company in relation to the previous
year relevant to the assessment year commencing on the 1st
day of April, 1992, where effect is to be given to the
unabsorbed depreciation allowance or unabsorbed investment
allowance or both in relation to any previous year relevant
to the assessment year commencing on or before the 1st day
of April, 1991, the deduction shall be restricted to
two-third of such allowance or allowances and the balance,-
(a) where it relates to depreciation allowance, be added to
the depreciation allowance for the previous year relevant to
the assessment year commencing on the 1st day of April, 1993
and be deemed to be part of that allowance or if there is no
such allowance for that previous year, be deemed to be the
allowance for that previous year and so on for the
succeeding previous years ;
(b) where it relates to investment allowance, be carried
forward to the assessment year commencing on the 1st day of
April, 1993 and the balance of the investment allowance, if
any, still outstanding shall be carried forward to the
following assessment year and where the period of eight
years has expired before the portion of such balance is
adjusted, the said period shall be extended beyond eight
years till such time the portion of the said balance is
absorbed in the profits and gains of the business of the
domestic company.
(2) For the assessment year commencing on the 1st day of
April, 1992, the provisions of sub-section (2) of section 32
and sub-section (3) of section 32A shall apply to the extent
such provisions are not inconsistent with the provisions of
sub-section (1) of this section.
(3) Nothing contained in sub-section (1) shall apply where
the amount of unabsorbed depreciation allowance or of the
unabsorbed investment allowance, as the case may be, or the
aggregate amount of such allowances in the case of a
domestic company is less than one lakh rupees.
(4) Nothing contained in sections 234B and 234C shall apply
to any shortfall in the payment of any tax due on the
assessed tax or, as the case may be, returned income where
such shortfall is on account of restricting the amount of
depreciation allowance or investment allowance under this
section and the assessee has paid the amount of shortfall
before furnishing the return of income under sub-section (1)
of section 139.
What is Development rebate? Section 33 of Income Tax Act 1961
What is Development allowance? Section 33A of Income Tax Act 1961
What is Site Restoration Fund? Section 33ABA of Income Tax Act 1961
What is Reserves for shipping business? Section 33AC of Income Tax Act 1961
What is Rehabilitation allowance? Section 33B of Income Tax Act 1961
What is Expenditure on scientific research? Section 35 of Income Tax Act 1961
What is Expenditure on know-how? Section 35AB of Income Tax Act 1961
What is Expenditure on eligible projects or schemes? Section 35AC of Income Tax Act 1961
What is Amortisation of certain preliminary expenses? Section 35D of Income Tax Act 1961