Development allowance, as defined by section 33A, may be deducted in the manner described in this section depending on the situation.
In relation to the planting of tea bushes on any land in India owned by an assessee, a sum by way of development allowance equal to I 50% of the actual cost of planting where tea bushes have been planted on any land not planted at any time with tea bushes or on any land that has previously been abandoned; and (ii) 30% of the act where tea bushes are planted to replace tea bushes that have died or have become permanently useless on any land already planted.
When the assessee’s total income for the assessment year related to the prior year for which the deduction is required to be allowed under subsection (1) (the total income for this purpose being computed after deduction of the allowance under subsection (1) or subsection (1A) or clause (ii) of subsection (2) of section 33, but without making any deductions under subsection (1) of this section or deductions under Chapter VI-A is nil o (1).
Any allowance under this section shall be deemed to have been made in error for the purposes of this Act if any such land is sold or otherwise transferred by the assessee to any person at any time before the expiration of eight years from the end of the previous year in which the deduction under sub-section (1) was allowed. In this case, the provisions of sub-section (5A) of section 155 shall apply.
Other provisions of this section are much similar to the provisions of development rebate mentioned in section 33 of the income tax act.