Section 2 in The Assam Agricultural Income-Tax Rules, 1939
2.
(1)In addition to the deductions specifically allowed under Section 7 of the Act the following deductions provided under clause (n) of Section 7 shall be allowed :(i)Any sum actually donated for charitable purposes if such donation in aggregate is not more than Rupees five lakhs or ten per-centum of total agricultural income, whichever is less, provided that such sum is actually spent for such purposes in the State of Assam."Charitable purposes" in this rule includes relief of the poor, education, medical relief and the advancement of any other object of general public utility not involving the carrying on of any activity for profit.(ii)Sums actually paid as interest on bona fide loan proved to be taken exclusively for payment of land revenue or local rate :Provided that in the case of an assessee in whose case deduction on account is made in assessment, any amount realised by him as interest on arrears of rent from tenants in any year shall be deemed to be agricultural income of that year and assessed accordingly.(iii)Municipal taxes paid in respect of Kutcheries used for collection of rent.(iv)Survey and settlement expenditure.(v)Maintenance allowances paid to widow forming charge on the estate.(vi)Monthly allowance paid to junior members of a family owning an impartible estate.(vii)A sum equal to 15 per cent of the total amount of income (not amounting to rent) recovered in respect of rights of pasturage, thatch or other forest produce in the previous year, in respect of charges for collecting the same.(viii)Any expenditure (not being in the nature of capital expenditure or personal expense of the assessee) laid out or expended wholly and exclusively for the purpose of deriving such agricultural income.(2)In addition to deductions specifically allowed under sub-section (2) of Section 8, the following deductions shall be allowed under Clause (h) of that sub-section :(i)Any sum actually donated for charitable purposes if such donation is not more than Rupees five lakhs or ten per-centum of total agricultural income, whichever is less, provided such sum is actually spent for such purposes in the State of Assam.(ii)Municipal taxes paid in respect of premises used in connection with agriculture (e.g., for management of agriculture, for housing of agricultural employees or for storing or selling agriculture stocks and stores);(iii)In respect of animals which have been used for the purpose of agriculture and have died, or have permanently become unless for such purposes, the difference between the original cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses of animals (whether the livestock is replaced or not);(iv)Any sum paid as bonus or commission to an employee or services rendered in connection with cultivation;Provided that the amount of the bonus or commission is reasonable with reference to-(a)the pay of the employee and the conditions of his service;(b)the assessee's income for the year in question; and(c)the general practice amongst persons carrying on cultivation for similar kind;(v)where the assessee's accounts in respect of any part of his agricultural income are kept not on cash basis but on mercantile basis, such sums as has actually been written off as bad debt in his books in respect of that part of his income; provided the sum became actually bad and became so in the previous agricultural year.(3)For the purposes of claiming a deduction under clause (m) of Section 7 and clause (g) of sub-section (2) of Section 8 and rules framed thereunder, an assessee shall furnish along with the return of Agricultural Income under Section 19(1) or 19(2);(a)A copy of actual payee's receipt attested by a gazetted officer.(b)A copy of a certificate obtained from the Commissioner of Taxes to the effect that such donation is exempted from levy of tax under the Assam Agricultural Income Tax Act, 1939.(c)A certificate, authenticated by a practising Chartered Accountant, from the Head of the Institution, Organiser, Chairman or Manager of a trust, as the case may be, to whom such donation is made, to the effect that such donation received has actually been spent for charitable purposes within Assam.However, the provisions of clauses (b) and (c) above shall not apply in case of any such donation made to the Chief Minister's Relief Fund.(4)A charitable organisation or institution or a trust whichever is engaged in activities prescribed under this rule to be of charitable purposes, may apply to the Commissioner and obtain a certificate to the effect that donations made to such organisation or institution or trust, as the case may be, is exempted from levy of tax under the Assam Agricultural Income-tax Act, 1939, subject to condition laid down under Section 7(m) or 8(2)(g).An application for an exemption certificate (as may be so called hereinafter), among others, shall contain following particulars:-
