Section 48
Section 48: tea, coffee and rubber development account deduction
Section 48 gives businesses engaged in growing and manufacturing tea, coffee or rubber in India a deduction based on amounts deposited into a special "development account" or deposit account, with the detailed computation, withdrawal-taxation and asset-transfer rules set out in Schedule IX of the Act.
The deduction
Section 48(1) allows an assessee carrying on the business of growing and manufacturing tea, coffee or rubber in India a deduction based on deposits made into the special account or deposit account, computed as per the provisions of Schedule IX.
Taxation on withdrawal and asset transfer
Section 48(2) provides that any amount withdrawn, utilised or released from these accounts - at closure or otherwise - is charged to tax as per the provisions of Schedule IX.
Section 48(3) provides that where an asset acquired under the special scheme or deposit scheme (as referred to in Schedule IX) is sold or otherwise transferred in any tax year, that transfer is charged to tax in accordance with Schedule IX.
Frequently asked questions
Which businesses can claim the Section 48 deduction?
Businesses carrying on growing and manufacturing of tea, coffee or rubber in India, based on deposits made into a special development account or deposit account.
Where are the detailed computation rules for this deduction?
In Schedule IX of the Act - Section 48 itself only sets out the basic entitlement, withdrawal-taxation, and asset-transfer-taxation rules, and refers the detailed mechanics to that Schedule.
Related sections
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