| SL No. | Section | Incentive currently available in the Act | Proposed phase out measures/Amendment |
| 1 | 32 read with rule 5 | Accelerated depreciation upto 100% | Highest rate of depreciation shall be restricted to 40% w.e.f01.04.2017. |
| 2 | 35(1) (ii) – Expenditure on scientific research. | Weighted deduction to the extent of 175% of any sum paid | Weighted deduction shall be restricted to 150% from 01.04.2017 to 31.03.2020 and upto 100% from 01.04.2020 |
| 3 | 35(1) (iia)-Expenditure on scientific research. | Weighted deduction to the extent of 125% of any sum paid. | Deduction shall be restricted to 100% with effect from 01.04.2017 |
| 4 | 35(1) (iii) – Expenditure on scientific research. | Weighted deduction to the extent of 125% of contribution | Deduction shall be restricted to 100% with effect from 01.04.2017 |
| 5 | 35(2AA) – Expenditure scientific research. | Weighted deduction to the extent of 200% of any sum paid | Weighted deduction shall be restricted to 150% with effect from 01.04.2017 to 31.03.2020 and upto 100 per cent from 01.04.2020 |
| 6 | 35(2AB) – Expenditure on scientific research. | Weighted deduction of 200% of the expenditure (not being expenditure in the nature of cost of any land or building) | Weighted deduction shall be restricted to 150% from 01.04.2017 to 31.03.2020 and upto 100% from 01.04.2020 |
| 7 | 35AD- Deduction in respect of specified business. | Weighted deduction of 150% of capital expenditure (other than expenditure on land, goodwill and financial assets) | Deduction shall be restricted to 100% of capital expenditure w.e.f. 01.04.2017 |
| 8. | 35CCC- Expenditure on notified agricultural extension project. | Weighted deduction of 150% of expenditure incurred | Deduction shall be restricted to 100% from 01.04.2017 |
The above amendments shall be effective from 1st April, 2018
