Eligible Assessee – All assessee
Eligible expenditure – This section provides for deduction in respect of payment made to
- Any association or institution to be used for carrying out any programme of rural development approved by the prescribed authority
- An association or institution which has its object the training of persons for implementation of a rural development programme
- National fund for rural development set up by government
- National poverty eradication fund set up and notified by the Central Government
In a case where payment is made to the specified persons and subsequently its approval is withdrawn, deduction is not denied.
If a deduction is claimed and allowed under section 35AC, the same is not allowed as a deduction in any other provisions of the Act.