Tea Coffee Rubber Development Account

Section 48 — TEA / COFFEE / RUBBER DEVELOPMENT ACCOUNT

Section 48 prescribes a special-deduction regime for assessees engaged in the business of growing and manufacturing tea / coffee / rubber in India — substantive equivalent of 1961 s. 33AB. Up to 40% of profits (or actual deposit, whichever is less) deposited with NABARD / Tea Development Account / Coffee Development Account / Rubber Development Account is deductible. The deposit must be made within 6 months from end of FY OR before return-filing due date u/s 263, whichever is earlier.

STATUTORY ARCHITECTURE

Section 48 is a profit-deferral incentive for plantation industries. The 40% cap applies to PGBP profits before this deduction. Deposit with NABARD-approved scheme; withdrawal allowed only for purposes specified in CBDT Notifications (typically expansion / replanting / modernisation). Misuse of withdrawn funds for non-specified purposes triggers reversal of deduction in the year of misuse.

PLANNING NOTES

(i) For tea / coffee / rubber plantation companies, evaluate s. 48 deposit annually — significant deferral of tax. (ii) Verify deposit timing — must be within 6 months from FY end OR before s. 263 return-due-date, whichever earlier. Late deposits forfeit deduction. (iii) Maintain NABARD certificate + auditor certification (Form 3CD Item 17).

CROSS-REFERENCES

• Section 263 — Return of income (deposit timing).
• Section 38 — Deemed profits (interaction with misused withdrawal).
• NABARD-administered Tea / Coffee / Rubber Development Schemes.