Direct Expenditure by all assessees
on Agriculture Extension Project ( Expenditure on training and education of farmers)
Covered here
not donation to outside party
150% 100% Deduction available of amount of expenditure incurred (New Amendment)
important
- This section allows 150% deduction of the expenditure incurred on agriculture extension project
- The agriculture extension project which is eligible under this scheme will be specified by board (CBDT) Example:-Expenditure on training and education of farmer
- This deduction is available for all assesses.
- If deduction claimed under this section then it cannot be claimed in any other section .
Questions
Q1
| Proft and Loss of Ajay & Co,a proprietorship | |
| SALES | 800000 |
| Less | |
| EXPENSES | 700000 |
| PROFIT | 100000 |
| Suppose Expenses Include | |
| Expenditure on Approved Agriculture Extension Project | 40000 |
View answer
In this case,150% Deduction available even for Proprietorship.
| Computation of PGBP Income | |
| Profit as per P& L A/c | 100000 |
| Add | |
| Expense Disallowed | |
| Expenditure on Approved Agriculture Extension Project | 40000 |
| Less | |
| Expense Allowed | |
| 150% Deduction on Approved Agriculture Extension Project | 60000 |
| (40000*150%) | |
| PGBP INCOME | 80000 |