Income Tax Act, 2025
Section 6: Subs. by s. 8, ibid., for “twenty per cent.” (w.e.f. 11966).
6. Subs. by s. 8, ibid., for “twenty per cent.” (w.e.f. 11966).
7. Subs. by s. 3, ibid., for “be allowed as a deduction in respect of the third secceeding previous year next following he
previous year in which the land is prepared for planting or replanting, as the case may be” (w.e.f. 11966).
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(b) thereafter, the development allowance shall again be computed with reference to the actual
cost of planting, and if the sum so computed exceeds the amount allowed as a deduction under clause
(a), the amount of the excess shall be allowed as a deduction in respect of the third succeeding
previous year next following the previous year in which the land has been prepared for planting or
replanting, as the case may be:]
1[Provided that no deduction under clause (i) shall be allowed unless the planting has commenced
after the 31st day of March, 1965, and been completed before the 1st day of April, 1990:
Provided further that no deduction shall be allowed under clause (ii) unless the planting has
commenced after the 31st day of March, 1965, and been completed before the 1st day of April, 1970.]
(2) Where the total income of the assessee assessable for the assessment year relevant to
2[the previous year in respect of which the deduction is required to be allowed under sub-section (1)]
3[(the total income for this purpose being computed after deduction of the allowance under sub-section (1)
or sub-section (1A) or clause (ii) of sub-section (2) of section 33, but without making any deduction under
sub-section (1) of this section or any deduction under Chapter VI-A 4***)] is nil or is less than the full
amount of the development allowance 5[calculated at the rates and in the manner specified in
sub-section (1)]—
(i) the sum to be allowed by way of development allowance for that assessment year under
sub-section (1) shall be only such amount as is sufficient to reduce the said total income to nil; and
(ii) the amount of the development allowance, to the extent to which it has not been allowed as
aforesaid, shall be carried forward to the following assessment year, and the development allowance
to be allowed for the following assessment year shall be such amount as is sufficient to reduce the
total income of the assessee assessable for that assessment year, computed in the manner aforesaid,
to nil, and the balance of the development allowance, if any, still outstanding shall be carried forward
to the following assessment year and so on, so, however, that no portion of the development
allowance shall be carried forward for more than eight assessment years immediately succeeding the
assessment year in which the deduction was first allowable.
Explanation.—Where for any assessment year development allowance is to be allowed in
accordance with the provisions of sub-section (2) in respect of more than one previous year, and the
total income of the assessee assessable for that assessment year 3[(the total income for this purpose
being computed after deduction of the allowance under sub-section (1) or sub-section (1A) or
clause (ii) of sub-section (2) of section 33, but without making any deduction under sub-section (1) of
this section or any deduction under Chapter VIA 4*** )] is less than the amount of the development
allowance due to be made in respect of that assessment year, the following procedure shall be
followed, namely:—
(i) the allowance under clause (ii) of sub-section (2) of this section shall be made before any
allowance under clause (i) of that sub-section is made; and
thereafter, the development allowance shall again be computed with reference to the actual
cost of planting, and if the sum so computed exceeds the amount allowed as a deduction under clause
shall be allowed unless the planting has commenced
after the 31st day of March, 1965, and been completed before the 1st day of April, 1990:
Provided further that no deduction shall be allowed under clause
unless the planting has
commenced after the 31st day of March, 1965, and been completed before the 1st day of April, 1970.]
Where the total income of the assessee assessable for the assessment year relevant to
2[the previous year in respect of which the deduction is required to be allowed under sub-section
or sub-section
or clause
of sub-section
of section 33, but without making any deduction under
sub-section
of this section or any deduction under Chapter VI-A 4***)] is nil or is less than the full
amount of the development allowance 5[calculated at the rates and in the manner specified in
sub-section
the sum to be allowed by way of development allowance for that assessment year under
sub-section
shall be only such amount as is sufficient to reduce the said total income to nil; and
the amount of the development allowance, to the extent to which it has not been allowed as
aforesaid, shall be carried forward to the following assessment year, and the development allowance
to be allowed for the following assessment year shall be such amount as is sufficient to reduce the
total income of the assessee assessable for that assessment year, computed in the manner aforesaid,
to nil, and the balance of the development allowance, if any, still outstanding shall be carried forward
to the following assessment year and so on, so, however, that no portion of the development
allowance shall be carried forward for more than eight assessment years immediately succeeding the
assessment year in which the deduction was first allowable.
Explanation.—Where for any assessment year development allowance is to be allowed in
accordance with the provisions of sub-section
in respect of more than one previous year, and the
total income of the assessee assessable for that assessment year 3[(the total income for this purpose
being computed after deduction of the allowance under sub-section
or sub-section
or
clause
of sub-section
of section 33, but without making any deduction under sub-section
of
this section or any deduction under Chapter VIA 4*** )] is less than the amount of the development
allowance due to be made in respect of that assessment year, the following procedure shall be
followed, namely:—
the allowance under clause
of sub-section
of this section shall be made before any
allowance under clause
of that sub-section is made; and