If you have a business that deals with tea, coffee, or rubber, you could get a tax deduction under Section 33AB of the Income Tax Act. However, you must fulfil a few crucial requirements to claim tax deductions under this section. Read on to know all the details about Section 33AB.
As per Section 33AB of the Income Tax Act, if a business owner engages in manufacturing and cultivating coffee, tea and rubber, they are eligible for tax deductions. To avail of tax benefits, business owners need to deposit the requisite amount in a specified ‘Deposit Account’ or ‘Special Account.’
Assessees need to deposit the amount in any of these:
Given below are details related to the time period for depositing the requisite amount:
Details of the deduction amount under Section 33AB of the Income Tax Act are as follows:
Assessees must remember that the deduction is available on the lower of the two amounts mentioned above.
Given below are important points that one must remember:
Also Read: List of 11 Tax-Free Income Sources In India (2022)
If you have a business dealing with tea, coffee or rubber, you need to be aware of Section 33AB of the Income Tax Act. It provides a legal framework which enables taxpayers to seek deductions for specified businesses. However, they need to deposit the requisite amount in a specified account to avail this tax benefit.
Ans: One can withdraw the amount in these situations:
If a business shuts down
If taxpayers pass away
If liquidation of the firm takes place
If a division of HUF (Hindu Undivided Family) takes place
Ans: Taxpayers must be aware of an important condition for tax audit under Section 33AB. A registered chartered accountant must audit accounts of their business. Moreover, the audit needs to be completed before the stipulated date mentioned by the council.
Ans: Taxpayers need to fill out Form no. 3AC for availing tax benefits under Section 33AB of the Income Tax Act.
Ans: If you withdraw the amount and use it for buying the following, the Income Tax officials will deem it as ‘income’:
Plant and machinery installed in office premises or guest houses of the office
Instruments and tools, including computers
Plant and machinery in the industrial premises, installed for manufacturing, construction and production
Plant and machinery for which the real cost is allowed as a deduction under ‘profits and gains of business and profession.’
Ans: The Central Government has decided to repeal the Coffee Act of 1942 and Tea Act of 1953. This is because the existing provisions had become redundant. Instead, GOI wishes to bring in new regulations under the Tea (Promotion and Development) Act 2022, which would benefit the growth of the tea and coffee industry.
What are the Sources of Public Revenue for Government? – Major Tax and Non-tax Sources
The government undertakes many initiatives and projects aimed at economic growth and progress. This... Read More »PF Withdrawal Rules 2023 – Rules, Documents Required and Types
EPF/PF Withdrawal Employees’ Provident Fund (abbreviated as EPF) is a popular retirement... Read More »How to Withdraw PF Amount? – Steps, Eligibility, and Status Check
Employees Provident Fund (EPF) is a government-backed retirement savings scheme. It falls under the... Read More »Cess on Income Tax: Overview, Types and Calculation
What is Cess on Income Tax? Cess is an additional tax on taxes imposed by the central government... Read More »Short-Term Capital Gains Tax Under Section 111A of the Income Tax Act
What is Section 111A of the Income Tax Act? Section 111A of the Income Tax Act deals with taxati... Read More »Old vs New Tax Regime – Which One is More Beneficial in 2023?
The government introduced a new tax regime in FY 20-21 in addition to the existing regime and revis... Read More »Form 26AS – How to View and Download Form 26AS Online?
What is Form 26AS? Form 26AS is a consolidated tax statement issued by the Income Tax Department... Read More »Deductions on Salary Under Section 16 of the Income Tax Act, 1961
Section 16 of Income Tax Act, 1961 Section 16 of the Income Tax Act, 1961 mentions allowances an... Read More »Section 192A of Income Tax Act : TDS on EPF Withdrawal
Section 192A of Income Tax Act Section 192A of the Income Tax Act is related to TDS or Tax Deduc... Read More »Income Tax Deduction Under Section 80EE on Home Loan Interest
What is Section 80EE of the Income Tax Act? Section 80EE of the Income Tax Act, 1961 was formula... Read More »Section 80C of Income Tax Act Deduction Limit FY 2022-23
What is Section 80C in Income Tax? Section 80C of the Income Tax Act, 1961 allows you to claim t... Read More »How to Check Your TDS Status by Using Your PAN Card?
Tax Deducted at Source, or TDS under the Income Tax act of 1961, is a system of collecting taxes i... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs in India to Invest in March 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »10 Best Demat Accounts in India for Beginners in 2023
Creation of Demat accounts revolutionised the way trades were conducted at the stock exchanges.&nbs... Read More »20 Best Index Funds to Invest in India in March 2023
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India in March 2023
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »10 Best SIP Plans in India to Invest in March 2023
What is SIP? SIP or Systematic Investment Plan is a method of investing a fixed amount in ... Read More »10 Best Corporate Bond Funds in India to Invest in March 2023
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Bank for Savings Account in India 2023 – With Interest Rates
Savings account is a type of financial instrument offered by several banks. It lets you safely depo... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10