Income Tax Act, 2025
Section 6: Ins. by Act 25 of 2014, s. 11 (w.e.f. 12015).
6. Ins. by Act 25 of 2014, s. 11 (w.e.f. 12015).
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(iii) any office appliances including computers or computer software;
(iv) any vehicle; or
(v) any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year.]
1[32AD. Investment in new plant or machinery in notified backward areas in certain
States.— (1) Where an assessee, sets up an undertaking or enterprise for manufacture or production of
any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central
Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of
Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the
said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending
before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a
sum equal to fifteen per cent. of the actual cost of such new asset for the assessment year relevant to the
previous year in which such new asset is installed.
(2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in
connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii) or
clause (xiiib) or clause (xiv) of section 47, within a period of five years from the date of its installation,
the amount of deduction allowed under sub-section (1) in respect of such new asset shall be deemed to be
the income of the assessee chargeable under the head “Profits and gains of business or profession” of the
previous year in which such new asset is sold or otherwise transferred, in addition to taxability of gains,
arising on account of transfer of such new asset.
(3) Where the new asset is sold or otherwise transferred in connection with the amalgamation or
demerger or re-organisation of business referred to in clause (xiii) or clause (xiiib) or clause (xiv) of
section 47 within a period of five years from the date of its installation, the provisions of sub-section (2)
shall apply to the amalgamated company or the resulting company or the successor referred to in
clause (xiii) or clause (xiiib) or clause (xiv) of section 47, as the case may be, as they would have applied
to the amalgamating company or the demerged company or the predecessor referred to in clause (xiii) or
clause (xiiib) or clause (xiv) of section 47.
(4) For the purposes of this section, “new asset” means any new plant or machinery (other than a ship
or aircraft) but does not include—
(a) any plant or machinery, which before its installation by the assessee, was used either within or
outside India by any other person;
(b) any plant or machinery installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest house;
(c) any office appliances including computers or computer software;
(d) any vehicle; or
(e) any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year.]
any office appliances including computers or computer software;
any vehicle; or
any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year.]
1[32AD. Investment in new plant or machinery in notified backward areas in certain
States.—
Where an assessee, sets up an undertaking or enterprise for manufacture or production of
any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central
Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of
Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the
said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending
before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a
sum equal to fifteen per cent. of the actual cost of such new asset for the assessment year relevant to the
previous year in which such new asset is installed.
If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in
connection with the amalgamation or demerger or re-organisation of business referred to in clause
or
clause
or clause
of section 47, within a period of five years from the date of its installation,
the amount of deduction allowed under sub-section
in respect of such new asset shall be deemed to be
the income of the assessee chargeable under the head “Profits and gains of business or profession” of the
previous year in which such new asset is sold or otherwise transferred, in addition to taxability of gains,
arising on account of transfer of such new asset.
Where the new asset is sold or otherwise transferred in connection with the amalgamation or
demerger or re-organisation of business referred to in clause
or clause
or clause
of
section 47 within a period of five years from the date of its installation, the provisions of sub-section
shall apply to the amalgamated company or the resulting company or the successor referred to in
clause
or clause
or clause
of section 47, as the case may be, as they would have applied
to the amalgamating company or the demerged company or the predecessor referred to in clause
or
clause
or clause
of section 47.
For the purposes of this section, “new asset” means any new plant or machinery (other than a ship
or aircraft) but does not include—
any plant or machinery, which before its installation by the assessee, was used either within or
outside India by any other person;
any plant or machinery installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest house;
any office appliances including computers or computer software;
any vehicle; or
any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year.]