Hospitals Tax Deductions
Hospitals in India can avail various tax deductions while filing their Income Tax Return (ITR). These deductions help hospitals reduce their taxable income, ultimately lowering their tax liability.
Three important deductions that hospitals can consider are:
◘ Section 80IC:
Under this section, hospitals located in specified backward areas can claim a deduction of a certain percentage of their profits for a specified period.
This deduction aims to promote investment and development in such areas. The deduction percentage and duration may vary based on the location and other criteria.
◘ Section 35AD:
Hospitals engaged in the business of setting up and operating a hospital in India can claim a deduction for capital expenditure incurred on the construction, establishment, or operation of the hospital.
This deduction is available for a certain percentage of the capital expenditure incurred during the relevant assessment year.
◘ Section 10(23C):
Hospitals run by charitable or religious trusts can claim exemption under this section if they fulfill certain conditions.
The income derived from such hospitals can be exempted from income tax if it is applied for charitable purposes in India. This provision supports the healthcare sector’s charitable activities.
It’s essential for hospitals to carefully assess their eligibility and compliance with these deductions.
Consulting with a tax professional or financial advisor can ensure accurate claim of these deductions and adherence to tax regulations during ITR filing.
To visit: https://www.incometax.gov.in
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