One of the landmark inclusions in Budget 2012 features investment linked deduction of capital expenditure incurred in the following businesses

• bee keeping and production of honey and beeswax

• container freight station and inland container depots (CFS/ICD)

• warehousing for storage of sugar.

in addition to the below mentioned businesses proposed & implemented in previous year’s Budget

• Cold chain facility

• Warehouses for storage of food grains

• Hospitals

• Fertilisers

• Affordable housing

The new sectors are proposed to be added for the purposes of investment linked deduction at the enhanced rate of 150%, as against the current rate of 100%.

It is to be noted that Sec 35AD is structured in a way to culminate & accelerate the growth of specific business areas which are carrying on businesses of saturated demands backed by urgency & mass sensitivity.Businesses covered in Sec 35AD are meant to incur huge promotional & pre-incorporation expenses & therefore need complete tax rescue in the start-up phases.It is often looked upon as a descendant of Sec 80I, the difference being tax benefits directly linked to investments made.