1.This section allows 150% 100% deduction on expenditure inured on skilled development project (New Amendment)
2.This scheme is only for company assessees
3.Expenditure on land or building not covered
4.The skilled development project eligible under this scheme will be specified by board (CBDT) .
Example:-Certain Vocational Traning Institutes
Note:-If deduction claimed under this section then it cannot be claimed in any other section .
|
EARLIER |
NOW |
|
150% Deduction was available on Direct Expenditure on Skill Development Project |
100% Deduction was available on Direct Expenditure on Skill Development Project |
Questions
Q1
| Proft and Loss of Ajay & Co,a proprietorship | |
| SALES | 800000 |
| Less | |
| EXPENSES | 500000 |
| PROFIT | 300000 |
Suppose Expenses Include
Expenditure on Approved Skilled Development Project of Rs 60000
View AnswerDeduction not allowed as Ajay& Co is a proprietorship,not a company
| Computation of PGBP Income | |
| Profit as per P& L A/c | 300000 |
| Add | |
| Expense Disallowed | |
| Expenditure on Approved Skilled Development Project | 60000 |
| Less | |
| Expense Allowed | |
| PGBP INCOME | 360000 |
-ea-
Q2
Solve last question assuming it is a Company
-a-
In this case,150% deduction will be available.
| Computation of PGBP Income | |
| Profit as per P& L A/c | 300000 |
| Add | |
| Expense Disallowed | |
| Expenditure on Approved Skilled Development Project | 60000 |
| Less | |
| Expense Allowed | |
| 150% Deduction on Approved Skilled Devopment Project | 90000 |
| (60000*150%) | |
| PGBP INCOME | 270000 |
