AUBSP»Income Tax»Taxpayers»Section 35CCB of Income-tax Act 1961-2017 – Expenditure by way of payment to associations and institutions for carrying out rural development programmes

Section 35CCB of Income-tax Act 1961-2017 – Expenditure by way of payment to associations and institutions for carrying out rural development programmes

Detail analysis of the provisions of Section 35CCB (Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources) of Income-tax Act 1961 as amended by latest Finance Act 2017.

Chapter IV (Sections 14-59) of Income Tax Act, 1961 deals with provisions related to computation of total income. Section 35CCB of Income Tax Act 1961-2017 provides Special provision for expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources.

(1) 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.

(2) 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.

(3) 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.

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