Section-48: Tea development account, coffee development account and rubber development account

Section-48 : Tea development account, coffee development account and rubber development account

Section-48 provide for tea development account, coffee development account and rubber development account and Site Restoration Fund which, inter alia, seek to deal with deduction of deposits in tea, coffee or rubber development accounts by the assessee or site restoration account engaged in prospecting or extracting or producing petroleum or natural gas or both. Learn to understand the section-48 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-48 as per act

Where an assessee is carrying on business of growing and manufacturing tea or coffee or rubber in India, such assessee shall be allowed a deduction on the basis of deposits into the tea development account, coffee development account or rubber development account or any other designated account and computed as per the provisions of the Schedule IX.
Any amount withdrawn or utilised or released at the time of closure or otherwise shall be charged to tax in the year in which the amount is transferred or withdrawn as per the provisions of the Schedule IX.
Where any asset acquired as per the scheme or the deposit scheme is sold or otherwise transferred in any tax year by the assessee to any person at any time before the expiry of eight years from the end of the tax year in which it was acquired, such part of the cost of such asset as is relatable to the deduction allowed under sub-section (1) shall be deemed to be the profits and gains of business or profession of the tax year in which the asset is sold or otherwise transferred and shall accordingly be chargeable to income-tax as the income of that tax year.