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Direct Tax Amendments proposed in the Finance Bill 1999

  

 

Deduction of Y2K expenses

The change in the millennium is expected to create a major software problem in respect of the computer systems which are not Y@K compliant, that is, which are not programmed to correctly reckon dates within and between the 20th and 21st century. The Bill proposes to insert a special provision to provide for deduction in computing the profits and gains of business or profession, of any expenditure incurred, wholly and exclusively to make the existing computer system Y2K compliant, on or after 1st April, 1999, but before 1st April, 2000.

The proposed amendment will take effect from 1st April, 2000 and will, accordingly, apply in relation to the assessment year 2000-2001 only.

The proposed amendment will take effect from 1st April, 2000 and will, accordingly, apply in relation to the assessment year 2000-2001 only.