Eligible Assessee:
Assessee: Engaged in prospecting/extraction/ production of minerals limestone, iron, gold, zinc etc.
Eligible Amount of Deduction
Deduction allowed for expenses incurred on-
- Any operation of prospecting for any minerals.
- Development of mine or other natural deposit of any mineral
Deduction allowed over a period of 10 years from the year in which commercial production started. Any Unabsorbed expenditure can be carried forward and be allowed along with instalment of next year (up to 10 years).
Other Points Related to Section 35E:
- Such expenditure should be incurred during the year of commercial production and 4 years immediately preceding that year.
- This deduction is restricted to income from Profit or Gain from Business or Profession of mines.
- Deduction not allowed on expenses incurred for acquisition of mines/sites or building
- This deduction is restricted to income from PGBP of mines.
- Deduction not allowed on expenses incurred for acquisition of mines/sites or building, P&M, furniture on which depreciation is allowed.
- Audit is mandatory for first year in which deduction is claimed and assessee has to submit report of CA up to date mentioned u/s 44AB.
