Deduction u/s 35CCD of the Income Tax Act 1962

Procedure for approval of skill development project for claiming deduction u/s 35CCD of the
Act r.w. Rule 6AAF, 6AAG and 6AAH of Income Tax Rules, 2013
1. Eligibily

2. Procedure




The skill development project should be undertaken by an
eligible company in seperate facilities in a training institute
Application to be made in Form no 3CQ to National Skill Development
Agency(NSDA)
Duplicate of the same to be sent to the Commissioner of Income Tax or
Director of Income Tax along with Acknowledgeemnt of Application
made to NSDA
Application to be supported by:
a) Detailed note on skill devement project
b) Expenditure expected to be incurred and expected date of completion
c) Letter of concurrence from the concerned training iinstitute
Incase of any inconsistency, NSDA shall intimate to the applicant (within
1 month)
The applicant shall remove the defect within 15 days( from end of month in
which application is received); in case of failure the applications hall be
treated as invalid



NSDA may make enquiries regarding genuineness of the activities and on
satisfactiongrant approval or rejection within 2 months from end of month
in which application is received
The CIT or the DIT shall send its recommendation to the NSDA considering
compliances with various Acts with 1 month from end of month in which
application is received
On recommendation of NSDA, the CBDT shall issue notification in Official
Gazette specifying the Skill development Project for such period (not
exceeding 3 AYs within 15 days (from end of month in which application is
received)
CBDT may rescind the notification if the matter of Genuineness is conflicted by
the company or the institute after giving the assessee an Opportunity to be
Heard
Copy of order rescinding Notification to be sent to the NSDA and the CIT or the
DIT