INCOEM TAX AMENDS FORM 3AA
AS per Section 32 of the Income Tax Act, an additional 15% deduction is allowed to industrial undertakings acquiring machinery or plant and where there is substantial expansion by way of increase in installed capacity by not less than 25%. The benefit can be allowed only if the assessee furnishes a return in Form 3AA certified by an accountant. This increase in installed capacity has been reduced to 10% in the Finance Act 2004 with effect from 1.4.2005. As the Form 3AA still mentions 25% increase, it has been amended to reduce it to 10% as per the amendment to Section 32 in the Finance Act 2004. An alert Board is aware of the cascading effects of amendments and they have amended the form well in advance before the return for the year 2005-06 is to be filed. Note 4 in the Form 3AA is amended to substitute 10% for 25%. While the CBDT has done a good job in amending the form in tune with the Finance Act, the official website of the Board http://incometaxindia.gov.in/forms/3aa.pdf is as good (or bad) as its CBEC counterpart. The Form given in the website does not have Note 4 at all. Government does not show as much interest in updating their sites as much as they show in starting web sites. Notification No , Dated: November 30, 2004.