Pro road safety projects eligible for income tax exemption

News

• The Finance Ministry has said that projects which promote road safety and aim at curbing accidents are eligible for deduction under the Income Tax Act.
• The project will, however, need to be notified as an eligible project, for which an application has to be made to Secretary, National Committee for Promotion of Social and Economic Welfare.

IT Act

• Section 35AC of the Income Tax Act 1961 states that the project, “where an assessee (entity) incurs any expenditure by way of payment of any sum to a public sector company/local authority/association/institution approved by the National Committee…the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount of such expenditure incurred during the previous year”.