Income Tax Act, 2025
Section 1: Ins. by Act 20 of 2015, s. 11 (w.e.f. 12016).
1. Ins. by Act 20 of 2015, s. 11 (w.e.f. 12016).
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33. Development rebate.—1[(1) (a) In respect of a new ship or new machinery or plant (other than
office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the
purposes of the business carried on by him, there shall, in accordance with and subject to the provisions
of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship
was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use
in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of
development rebate as specified in clause (b).
(b) The sum referred to in clause (a) shall be—
(A) in the case of a ship, forty per cent. of the actual cost thereof to the assessee;
(B) in the case of machinery or plant,—
(i) where the machinery or plant is installed for the purposes of business of construction,
manufacture or production of any one or more of the articles or things specified in the list in the
Fifth Schedule,—
(a) thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
(b) twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
(ii) where the machinery or plant is installed after the 31st day of March, 1967, by an assessee
being an Indian company in premises used by it as a hotel and such hotel is for the time being
approved in this behalf by the Central Government,—
(a) thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
(b) twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
(iii) where the machinery or plant is installed after the 31st day of March, 1967, being an
asset representing expenditure of a capital nature on scientific research related to the business
carried on by the assessee,—
(a) thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
(b) twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
(iv) in any other case,—
(a) twenty per cent. of the actual cost of the machinery or plant to the assessee, where it is
installed before the 1st day of April, 1970, and
(b) fifteen per cent. of such cost, where it is installed after the 31st day of March, 1970.]
2[(1A) (a) An assessee who, after the 31st day of March, 1964, acquires any ship which before the
date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also
1. Subs. by Act 20 of 1967, s. 33 and the Third Schedule, for sub-section (1) (w.e.f. 11968).
(a) In respect of a new ship or new machinery or plant (other than
office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the
purposes of the business carried on by him, there shall, in accordance with and subject to the provisions
of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship
was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use
in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of
development rebate as specified in clause
The sum referred to in clause
shall be—
in the case of a ship, forty per cent. of the actual cost thereof to the assessee;
in the case of machinery or plant,—
where the machinery or plant is installed for the purposes of business of construction,
manufacture or production of any one or more of the articles or things specified in the list in the
Fifth Schedule,—
thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
where the machinery or plant is installed after the 31st day of March, 1967, by an assessee
being an Indian company in premises used by it as a hotel and such hotel is for the time being
approved in this behalf by the Central Government,—
thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
where the machinery or plant is installed after the 31st day of March, 1967, being an
asset representing expenditure of a capital nature on scientific research related to the business
carried on by the assessee,—
thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where
it is installed before the 1st day of April, 1970, and
twenty-five per cent. of such cost, where it is installed after the 31st day of
March, 1970;
in any other case,—
twenty per cent. of the actual cost of the machinery or plant to the assessee, where it is
installed before the 1st day of April, 1970, and
fifteen per cent. of such cost, where it is installed after the 31st day of March, 1970.]
2[
(a) An assessee who, after the 31st day of March, 1964, acquires any ship which before the
date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also
1. Subs. by Act 20 of 1967, s. 33 and the Third Schedule, for sub-section
(w.e.f. 11968).