Section 35DD of Income Tax Act "Amortisation of expenditure in case of amalgamation or demerger"
35DD. (1) Where an assessee, being an Indian company,
incurs any expenditure, on or after the 1st day of April,
1999, wholly and exclusively for the purposes of
amalgamation or demerger of an undertaking, the assessee
shall be allowed a deduction of an amount equal to one-fifth
of such expenditure for each of the five successive previous
years beginning with the previous year in which the
amalgamation or demerger takes place.
(2) No deduction shall be allowed in respect of the
expenditure mentioned in sub-section (1) under any other
provision of this Act.
35DDA. (1) Where an assessee incurs any expenditure in any previous year by way of payment of any sum to an employee in connection with his voluntary retirement, in accordance with any scheme or schemes of voluntary retirement, one-fifth of the amount so paid shall be deducted in computing the profits and gains of the business for that previous year, and the balance shall be deducted in equal instalments for each of the four immediately succeeding previous years.
(2) Where the assessee, being an Indian company, is
entitled to the deduction under sub-section (1) and the
undertaking of such Indian company entitled to the deduction
under sub-section (1) is transferred, before the expiry of
the period specified in that sub-section, to another Indian
company in a scheme of amalgamation, the provisions of this
section shall, as far as may be, apply to the amalgamated
company as they would have applied to the amalgamating
company if the amalgamation had not taken place.
(3) Where the undertaking of an Indian company entitled to
the deduction under sub-section (1) is transferred, before
the expiry of the period specified in that sub-section, to
another company in a scheme of demerger, the provisions of
this section shall, as far as may be, apply to the resulting
company, as they would have applied to the demerged company,
if the demerger had not taken place.
(4) Where there has been reorganisation of business, whereby
a firm is succeeded by a company fulfilling the conditions
laid down in clause (xiii) of section 47 or a proprietary
concern is succeeded by a company fulfilling the conditions
laid down in clause (xiv) of section 47, the provisions of
this section shall, as far as may be, apply to the successor
company, as they would have applied to the firm or the
proprietary concern, if reorganisation of business had not
taken place.
(4A) Where there has been reorganisation of business,
whereby a private company or unlisted public company is
succeeded by a limited liability partnership fulfilling the
conditions laid down in the proviso to clause (xiiib) of
section 47, the provisions of this section shall, as far as
may be, apply to the successor limited liability
partnership, as they would have applied to the said company,
if reorganisation of business had not taken place.
(5) No deduction shall be allowed in respect of the
expenditure mentioned in sub-section (1) in the case of the
amalgamating company referred to in sub-section (2), in the
case of demerged company referred to in sub-section (3), in
the case of a firm or proprietary concern referred to in
sub-section (4) and in the case of a company referred to in
sub-section (4A) of this section, for the previous year in
which amalgamation, demerger or succession, as the case may
be, takes place.
(6) No deduction shall be allowed in respect of the
expenditure mentioned in sub-section (1) under any other
provision of this Act.
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