Section 9 in The Kerala Agricultural Income Tax Act, 1991
9. Rebate and Deduction allowed.
(1)In the case of an assessee being an individual, association of persons, body of individuals or firm, while computing the amount of agricultural income tax on the total agricultural income chargeable for an assessment year, there shall be allowed as rebate from the amount of agricultural income tax (as computed before allowing deductions under this section) twenty per cent of the following subscription or contribution namely: -(i)any sum paid in the previous year by the assessee out of his agricultural income towards life Insurance Premia or National Savings Certificate or National Savings Scheme or any other fund or scheme approved by the Government in this behalf and on such conditions as may be prescribed-(a)to effect or to keep in force an insurance, on the life of the assessee or on the life of the spouse or any child of the assessee or deposited in the name of these persons where the assessee is an individual;(b)to effect or keep in force a contract for a deferred annuity on the life of the assessee or on the life of the spouse or any child of the assessee or deposited in the name of any of these persons where the assessee is an individual;(c)to effect or keep in force an insurance on the life of any partner or deposited in the name of any partner of any firm or member of any association of persons where the assessee is a firm or association of Persons.Provided that the total rebate under this sub-section shall be limited to ten thousand rupees:Provided further that nothing contained in this sub-section shall be deemed to entitle a person who is assessed to income tax under the Income Tax Act, 1961 (Central Act 43 of 1961) to claim any deduction in respect of any sum referred in this sub- section if such claim is an admissible rebate or deduction under the provisions of that Act.(2)In computing the total agricultural income of a person there shall be deducted from his agricultural income any sum not exceeding one sixth of the total agricultural, income of the assessee twenty thousand rupees whichever is less, paid by him in the previous year out of his agricultural income as donation to a trust, institution or a fund established for charitable purposes and notified by the Government in this behalf in the Gazette.(3)In computing the total agricultural income of a person there shall be deducted from his agricultural income any sum not exceeding 20 percent of the total agriculture income of such assessee deposited by him in the previous year out of his agricultural income in the Fund established under the Investment Deposit Scheme intended to rejuvenate and modernise plantations notified by the Government in this behalf subject to the conditions that,(i)the replantation or infilling allowance admissible for the year and subsequent years under the rules shall be set off against such amount deposited under the scheme until it is fully so set off,(ii)withdrawals from the deposit shall for investment in landed property in accordance with the scheme in this behalf, and(iii)if any withdrawals from the deposit is not utilised for the purpose for which it is sanctioned it shall be treated as agricultural income of the year of the withdrawal and assessed accordingly.Explanation. - Where the deposit under the sub-section is made on or before the due date for filing of return for the year to which the deduction relates, the deposit shall be deemed to have been made during the previous year.(4)In computing the total Agriculture income of a company engaged in plantation business, which has invested any amount in the equity of a company registered under the Companies Act, 1956 (Central Act 1 of 1956) which establishes new industrial undertakings within the state out of its Agriculture Income in the previous year, there shall be deduced a sum not exceeding fifty per cent of the amount so invested, which shall not exceed the total Agriculture income in the previous year of that Company, computed without deduction provided under this sub-section or rupees one crore whichever is less, provided-(i)such investment is not in plantation industry or agricultural activities ancillary there to which is directly a down stream industry of the produce of the plantation;(ii)the amount invested is fully utilised within the State within a period of three years from the date of investment or before the commencement of commercial production of such industrial undertaking, whichever is earlier; and(iii)there is no transfer of investment within a period of five years of such investment.Explanation. - For the purpose of this sub-section, "new industrial undertaking" means an undertaking formed to carry on the business of manufacture of goods but shall not include such industries notified by the Government, from time to time, and shall continue to be so until the expiry of a period of five years from the year in which a deduction under this sub-section is first claimed or the commencement of commercial production, whichever is earlier.(5)For the removal of doubt it is hereby clarified that no deduction under sub-section (4) shall be made where the new industrial undertaking is formed by splitting up, or reconstruction of an industrial undertaking already in existence, or by transfer of any machinery, plant or other assets already used for any purpose in the State.(6)If the investment in respect of which deduction is made under subsection (4) is not utilised within the state as provided therein or is sold or transferred within a period of five years from the date of such investment, the deduction made in respect there of shall be deemed to be the agriculture income derived by the company during the year in the period of three years from the date of investment is expired or, as the case may be, during the year in which the state of transfer takes place and agriculture income shall be computed accordingly.
