Income Tax Act, 2025
Section 7: Subs. by Act 11 of 1987, s. 7 for clause (ii) (w.e.f. 11987).
7. Subs. by Act 11 of 1987, s. 7 for clause (ii) (w.e.f. 11987).
163
(iv) “Tea Board” means the Tea Board established under section 4 of the Tea
Act, 1953 (29 of 1953).]
(3) 1[The profits of business or profession of an assessee for the purposes of sub-section (1) shall] be
an amount arrived at after deducting an amount equal to the depreciation computed in accordance with
the provisions of sub-section (1) of section 32 from the amounts of profits computed in accordance with
the requirements of Parts II and III of the 2[Schedule VI] to the Companies Act, 1956 (1 of 1956),
3[as increased by the aggregate of—
(i) the amount of depreciation;
(ii) the amount of income-tax paid or payable, and provision therefor;
(iii) the amount of surtax paid or payable under the Companies (Profits) Surtax Act, 1964 (7 of
1964);
(iv) the amounts carried to any reserves, by whatever name called;
(v) the amount or amounts set aside to provisions made for meeting liabilities, other than
ascertained liabilities;
(vi) the amount by way of provision for losses of subsidiary companies; and
(vii) the amount or amounts of dividends paid or proposed,
if any debited to the profit and loss account; and as reduced by any amount or amounts withdrawn from
reserves or provisions, if such amounts are credited to the profit and loss account 4***.]
5* * * * *
(4) No deduction under sub-section (1) shall be allowed in respect of any amount utilised for the
purchase of—
(a) any machinery or plant to be installed in any office premises or residential accommodation,
including any accommodation in the nature of a guest-house;
(b) any office appliances (not being computers);
(c) any road transport vehicles;
(d) any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the head
“Profits and gains of business or profession” of any one previous year;
6[(e) any new machinery or plant to be installed in an industrial undertaking, other than a smallscale industrial undertaking, as defined in section 80HHA, for the purposes of business of
construction, manufacture or production of any article or thing specified in the list in the Eleventh
Schedule.]
(5) The deduction under sub-section (1) shall not be admissible unless the accounts of the business or
profession of the assessee for the previous year relevant to the assessment year for which the deduction is
claimed have been audited by an accountant as defined in the Explanation below sub-section (2)
of section 288 and the assessee furnishes, along with his return of income, the report of such audit in the
prescribed form duly signed and verified by such accountant:
(w.e.f. 11987).
163
“Tea Board” means the Tea Board established under section 4 of the Tea
Act, 1953 (29 of 1953).]
1[The profits of business or profession of an assessee for the purposes of sub-section
shall] be
an amount arrived at after deducting an amount equal to the depreciation computed in accordance with
the provisions of sub-section
of section 32 from the amounts of profits computed in accordance with
the requirements of Parts II and III of the 2[Schedule VI] to the Companies Act, 1956 (1 of 1956),
3[as increased by the aggregate of—
the amount of depreciation;
the amount of income-tax paid or payable, and provision therefor;
the amount of surtax paid or payable under the Companies
Surtax Act, 1964 (7 of
1964);
the amounts carried to any reserves, by whatever name called;
the amount or amounts set aside to provisions made for meeting liabilities, other than
ascertained liabilities;
the amount by way of provision for losses of subsidiary companies; and
the amount or amounts of dividends paid or proposed,
if any debited to the profit and loss account; and as reduced by any amount or amounts withdrawn from
reserves or provisions, if such amounts are credited to the profit and loss account 4***.]
5* * * * *
No deduction under sub-section
shall be allowed in respect of any amount utilised for the
purchase of—
any machinery or plant to be installed in any office premises or residential accommodation,
including any accommodation in the nature of a guest-house;
any office appliances (not being computers);
any road transport vehicles;
any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the head
“Profits and gains of business or profession” of any one previous year;
6[
any new machinery or plant to be installed in an industrial undertaking, other than a smallscale industrial undertaking, as defined in section 80HHA, for the purposes of business of
construction, manufacture or production of any article or thing specified in the list in the Eleventh
Schedule.]
The deduction under sub-section
shall not be admissible unless the accounts of the business or
profession of the assessee for the previous year relevant to the assessment year for which the deduction is
claimed have been audited by an accountant as defined in the Explanation below sub-section
of section 288 and the assessee furnishes, along with his return of income, the report of such audit in the
prescribed form duly signed and verified by such accountant: