Section 47
Section 47: expenditure on agricultural extension and skill development projects
Section 47 allows a deduction for expenditure incurred on two specific kinds of Board-notified projects: an agricultural extension project (available to any assessee) and a skill development project (available to a company), provided the project has been notified by the Board as per its guidelines.
What is deductible
Section 47(1) allows a deduction, in the tax year the expenditure is incurred, for expenditure (excluding the cost of any land or building) on: (a) an agricultural extension project, by any assessee; or (b) a skill development project, by a company - provided the relevant project has been notified by the Board as per its issued guidelines.
No double deduction
Section 47(2) provides that once a deduction under this section is claimed and allowed for any tax year in respect of specific expenditure, no deduction for that same expenditure can be claimed under any other provision of the Act, for the same or any other tax year.
Frequently asked questions
Who can claim a deduction for an agricultural extension project?
Any assessee - it is not restricted to companies - provided the project has been notified by the Board as per its guidelines.
Who can claim a deduction for a skill development project?
Only a company, and only if the specific skill development project has been notified by the Board as per its guidelines.
Does this deduction cover the cost of land or a building used for the project?
No - Section 47(1) expressly excludes the cost of any land or building from the deductible expenditure.
Related sections
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Talk to our tax team about agricultural extension and skill development deductionsLast updated 9 September 2026