Amended and updated notes on section 35CCD 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 on skill development project.
Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 35CCD of IT Act 1961-2023 provides for expenditure on skill development project.
Recently, we have discussed in detail section 35CCC (expenditure on agricultural extension project) of IT Act 1961. Today, we learn the provisions of section 35CCD of Income-tax Act 1961. The amended provision of section 35CCD 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 35CCD 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-35CCD: Expenditure on Skill Development Project
Section 35CCD(1) of Income Tax Act
Where a company incurs any expenditure (not being expenditure in the nature of cost of any land or building) on any skill development project notified by the Board in this behalf in accordance with the guidelines as may be prescribed, then, there shall be allowed a deduction of a sum equal to one and one-half times of such expenditure:
Provided that for the assessment year beginning on or after the 1st day of April, 2021, the provisions of this sub-section shall have effect as if for the words “an amount equal to one and one-half times of”, the words “a sum equal to” had been substituted.
Section 35CCD(2) 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 provisions of this Act for the same or any other assessment year.