Allowance deduction

Subject to the provisions of these Rules Income and Business Tax 7 (1) For the purpose of ascertaining the chargeable income of any person carrying on an enterprise specified in Part I of the Schedule there shall be allowed a deduction for the year in which capital expenditure is incurred, of an amount not exceeding fifty per centum of such expenditure and, for the next five years thereafter, of an amount not exceeding ten per centum of such expenditure. (2) Paragraph (1) of this rule shall have effect in the case of an enterprise specified in– (a) Part II of the Schedule as if for the words “fifty per centum”, “five years” and “ten per centum” there were substituted respectively the words “forty per centum”, “three years” and “twenty per centum”; (b) Part III of the Schedule as if for the words “fifty per centum” and “five years” there were substituted respectively the words twenty-five per centum” and “seven years”. (3) Where the amount of the deduction hereinbefore specified is such that it cannot be wholly set off against the income for the same year, the amount of such allowance shall to the extent to which it is not allowed against the income for the same year be carried forward and shall be set off against what would otherwise have been the chargeable income for the remainder of the period of operation of the enterprise.