Specified Business under section 35AD for AY 2020-21
What is section 35AD?
It is basically a deduction available towards expenditure on specified business under section 35AD of the Income Tax Act.
As per provisions of section 35AD, the deduction is available towards any capital expenditure, wholly and exclusively, incurred for carrying on a specified business. This deduction cannot be availed towards expenditure incurred for acquisition of any land or financial instrument or goodwill.
Note: This deduction cannot be availed when payment/ aggregate of payment exceeds INR 10,000 to a person in a single day and such payment is done via cash or bearer cheque or crossed cheque.
Data Entry Process in Software?
(For AY earlier to AY 2022-2023)
Step 1: Add Business in Transactions>>Business & Profession >>Specified (Point3) and choose Net profit/loss from drop down in partculars.
Go to Point No 4 >>Expenses and then Choose Deduction Under Section 35AD with relevant clause and save.