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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Location of Business

A promoter plans a new business and wants a deduction of the whole capital expenditure under section 46 of the Income-tax Act, 2025. Which proposed venture qualifies as a 'specified business' as defined?

Setting up and operating a cold chain facility is a specified business under the Act. A hospital with only 60 beds and a one-star hotel fail the 100-bed and two-star thresholds, and retail commodity trading is not a listed specified business at all.

  1. ABuilding and operating a hospital with 60 beds for patients
  2. BSetting up and operating a cold chain facilityCorrect
  3. CTrading in agricultural commodities through a retail outlet
  4. DBuilding and operating a one-star hotel

Explanation

Setting up and operating a cold chain facility is listed as a specified business. A hospital must have at least 100 beds, and a hotel must be two star or above, so options A and D fail. Retail trading is not listed.

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