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India Budget Series

PROPOSED PHASE OUT PLAN OF INCENTIVES

SL No. Section Incentive currently available in the Act Proposed phase out measures/Amendment
1 32 read with rule 5 Accelerated depreciation upto 100% Highest rate of depreciation shall be restricted to 40% w.e.f01.04.2017.
2 35(1) (ii) – Expenditure on scientific research. Weighted deduction to the extent of 175% of any sum paid Weighted deduction shall be restricted to 150% from 01.04.2017 to 31.03.2020 and upto 100% from 01.04.2020
3 35(1) (iia)-Expenditure on scientific research. Weighted deduction to the extent of 125% of any sum paid. Deduction shall be restricted to 100% with effect from 01.04.2017
4 35(1) (iii) – Expenditure on scientific research. Weighted deduction to the extent of 125% of contribution Deduction shall be restricted to 100% with effect from 01.04.2017
5 35(2AA) – Expenditure scientific research. Weighted deduction to the extent of 200% of any sum paid Weighted deduction shall be restricted to 150% with effect from 01.04.2017 to 31.03.2020 and upto 100 per cent from 01.04.2020
6 35(2AB) – Expenditure on scientific research. Weighted deduction of 200% of the expenditure (not being expenditure in the nature of cost of any land or building) Weighted deduction shall be restricted to 150% from 01.04.2017 to 31.03.2020 and upto 100% from 01.04.2020
7 35AD- Deduction in respect of specified business. Weighted deduction of 150% of capital expenditure (other than expenditure on land, goodwill and financial assets) Deduction shall be restricted to 100% of capital expenditure w.e.f. 01.04.2017
8. 35CCC- Expenditure on notified agricultural extension project. Weighted deduction of 150% of expenditure incurred Deduction shall be restricted to 100% from 01.04.2017

The above amendments shall be effective from 1st April, 2018

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