Deduction for Whom  

This deduction is only available to an assessee who is engaged in the  business of growing or manufacturing of coffee /tea / rubber .


Where to Deposit

The deduction is  available only if  certain  amount is deposited  in

 (a)  NABARD  (National Bank For Agriculture And Rural Development)

      As per Scheme of tea board /coffee board /rubber board)

(b)  Any deposit account.

(As per scheme of tea /coffee /rubber board + this scheme should be approved by Central Government.) 


Amount of Deduction

(1) The amount of deduction available is

     (a) Amount deposited

     (b) 40% of PGBP without considering Section 33AB deduction

whic hever is less.


Time Period to Deposit

6 months from end of the financial year in when deduction claimed. i.e.  30 September


Return Fililng Date  (31 July/30 September/30 November)

Which ever is earlier



A DUE DATE OF ITR 31-Jul 30-Sep 30-Nov
B 6 MONTH FROM END OF FY 30-Sep 30-Sep 30-Sep
C Amount to be deposited by 31 July 30-Sep 30-Sep
  (earlier of A AND B)      





Section 33AB Tea Coffee Rubber Development Account - Special Cases





Audit Requirement

  • Compulsory audit  required by CA, to claim deduction under this section, CA should give report in Prescribed form (Form 3AC).
  • If  accounts already audited  under any law then separate audit under this  section not required .However audit report in Form 3C required


How to utilize amount deposited .

It is to be utilized only as per scheme of tea / coffee / rubber board.

However,Amount  not allowed  to be utilized  for  :

  1. Purchase of  machinery  which is to be  used in office / home / guest house  .
  2. Any  office appliances (however computer allowed)
  3. Any plant & machinery whose 100% cost allowed as deduction under PGBP (for example  100% depreciation assets )
  4. Any machinery which is used for manufacture of  prohibited item  mentioned in  Eleventh schedule .


Withdrawal of deposit



Closure of business


Dissolution of firm


Partition of H.U.F

Not taxable

Death of assesse

Not taxable

Liquidation of company .

Not taxable


If amount withdrawn/not used as per scheme then it will be  treated as income and charged to Income Tax.


Asset Acquired Out of Funds of Scheme

Such assets should  not be transferred within 8 years

If transferred it will be treated as income of year in which it is transferred.


However in the following cases  these is no restriction of 8 years .

  1. Assets sold to government / Local Authority /  Government Company
  2. Conversion of partnership into company if all assets liabilities are transferred to company and all partners either become shareholder/members of the company .    




Proft and Loss of A Ltd,a Tea Company  
SALES 3000000
EXPENSES 2000000
PROFIT 1000000
Suppose expense include   
Illlegal Expenses 100000
Amt Deposited in NABARD in a Special scheme of Tea Board 400000
Total 500000


Compute 33AB Deduction and PGBP Income

View Answer

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.