What is SEC 35 2AB of income-tax?

What is SEC 35 2AB of income-tax?

As per Section 35(2AB) of the Income-tax Act, 1961 (the Act) where a company is engaged in the business of bio-technology or in any business of manufacture or production of any article or thing1, incurs any expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in- …

Which expenses are disallowed in PGBP?

Expenditures disallowed for payment in cash

• Payment to banks, financial institutions, etc.
• Payment to government.
• Payment made by book adjustments.
• Payment for purchase of agricultural products.
• Payment made to cottage industries which are producing without the aid of power.

What is form 3CK?

3CK. Application form for entering into an agreement with the Department of Scientific and. Industrial Research for cooperation in in-house Research and Development facility and for. audit of the accounts maintained for that facility.

What is Section 115BAA?

Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% plus sc of 10% and cess of 4%. The Effective Tax rate being 25.17% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions specified.

What is section 36 of income tax?

Section 36 of the income tax act 1961 contains the list of deductions from income earned through the business or profession. Here is the list of expenses allowed as deduction. Insurance Premium deduction in respect of risk of damage or destruction of stock in trade, life of the cattle and health insurance of employees.

What is minimum alternate tax India?

Minimum Alternate Tax is applied when the taxable income calculated according to the I-T Act provisions is found to be less than 15.5 per cent (plus surcharge and cess as applicable) of the book profit under the Companies Act, 2013.

What are unamortised expenses?

Expenses that are not written off to the company’s Statement of Profit/Loss on a regular basis are known as unamortized expenses. Because the gain from incurring such expenditure is not realised in a single year, they are not fully charged in the year in which they are incurred.

What comes under PGBP?

Profit and gains of Business or profession (also known as PGBP) is third head in computation of income apart from four incomes, namely, income from salary, income from house property , income from capital gains and income from other sources.

What is PGBP deduction?

Depreciation computed as per Income Tax Law (including additional depreciation) 2. Agricultural Income (exempt as per Income Tax Law) 3. Dividend/Interest/Income from Lottery or any income chargeable to any other heads other than PGBP charged to P/L.

What is form 10ib?

The Central Board of Direct Taxes issued Form 10-IB for Start-Ups allowing them to choose for a more economical tax rate. The notification supplements Rule 21AD to the Income Tax laws that provide for an application of option under sub-section 115BA (4) of Income Tax Act.