Amended and updated notes on section 35CCB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources.
Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 35CCB of IT Act 1961-2023 provides for expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources.
Recently, we have discussed in detail section 35CCA (expenditure by way of payment to associations and institutions for carrying out rural development programmes) of IT Act 1961. Today, we learn the provisions of section 35CCB of Income-tax Act 1961. The amended provision of section 35CCB is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 35CCB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-35CCB: Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources
Section 35CCB(1) of Income Tax Act
Where an assessee incurs any expenditure on or before the 31st day of March, 2002 by way of payment of any sum—
- (a) to an association or institution, which has as its object the undertaking of any programme of conservation of natural resources or of afforestation, to be used for carrying out any programme of conservation of natural resources or afforestation approved by the prescribed authority; or
- (b) to such fund for afforestation as may be notified by the Central Government,
the assessee shall, subject to the provisions of sub-section (2), be allowed a deduction of the amount of such expenditure incurred during the previous year.
Section 35CCB(2) of Income Tax Act
The deduction under clause (a) of sub-section (1) shall not be allowed with respect to expenditure by way of payment of any sum to any association or institution, unless such association or institution is for the time being approved in this behalf by the prescribed authority:
Provided that the prescribed authority shall not grant such approval for more than three years at a time.
Section 35CCB(3) of Income Tax Act
Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure referred to in sub-section (1), deduction shall not be allowed in respect of such expenditure under any other provision of this Act for the same or any other assessment year.