BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Under section 80J of the Income Tax Act 1961, new industrial undertakings, including small-scale industries, are exempted from the payment of income-tax on their profits subject to a maximum of 6% per annum of their capital employed.

Detailed explanation-2: -Section 80J of the Income-tax Act, 1961, as the marginal note says, provides for deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel business in certain cases.

Detailed explanation-3: -Under Section 32 of the Income Tax Act, a small-scale industry is eligible to get a deduction on the depreciation account of plant and machinery, land, and buildings, at the prescribed rates. In the case of small-scale industries, the deduction from the actual cost of plant and machinery is allowed up to Rs. 20 lakhs.

Detailed explanation-4: -Tax Break for Small-Scale Businesses in Rural Areas: A new Section 80-HHA was added to the Income Tax Act of 1961 by the Finance (No. 2) Act of 1977. According to Section 80-HHA, taxpayers are eligible for a deduction of 20% of the profits and gains generated by small-scale businesses operating in rural areas.

Detailed explanation-5: -Under Section 32 of the Income Tax Act, 1961, a small-scale industry is entitled to a deduction on depreciation account on block of assets at the prescribed rate. Small enterprise is allowed subject to a maximum of Rs. 20 lakh deduction for depreciation on plant and machinery on the diminishing balance method.