Ans: Section 115 BAC does not allow the following exemptions and deductions against business income. This includes the following deductions/exemptions: > Exemption for SEZ units under Section 10AA > Capital expenditure as per Section 35AD > Expenses on scientific research as per Section 35 > Deductions for sector-based business under Sections 33ABA and 33AB > Investment allowance as per Section 32AD > Additional depreciation as per Section 32