Insertion of new section 35ABA

Q: When was Section 16 of the Finance Act enacted?

Section 16 of the Finance Act, cited as Finance Act 2016 16, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 11 Oct 2026

Ministry Finance Enacted 27 Jun 2016 Cited by 1 provision

Section 16 of the Finance Act, 2016 deals with insertion of new section 35ABA. Insertion of new section 35ABA. 16. After section 35AB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2017, namely:— '35ABA. The Act was enacted on 27 Jun 2016.

Insertion of new section 35ABA.
16. After section 35AB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2017, namely:—
'35ABA. Expenditure for obtaining right to use spectrum for telecommunication services.—(1) In respect of any expenditure, being in the nature of capital expenditure, incurred for acquiring any right to use spectrum for telecommunication services either before the commencement of the business or thereafter at any time during any previous year and for which payment has actually been made to obtain a right to use spectrum, there shall, subject to and in accordance with the provisions of this section, be allowed for each of the relevant previous years, a deduction equal to the appropriate fraction of the amount of such expenditure.
(2) The provisions contained in sub-sections (2) to (8) of section 35ABB, shall apply as if for the word "licence", the word "spectrum" had been substituted.
(3) Where, in a previous year, any deduction has been claimed and granted to the assessee under sub-section (1), and, subsequently, there is failure to comply with any of the provisions of this section, then,—
(a) the deduction shall be deemed to have been wrongly allowed;
(b) the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the total income of the assessee for the said previous year and make the necessary rectification;
(c) the provisions of section 154 shall, so far as may be, apply and the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the failure to comply with the provisions of this section takes place.".
Explanation.— For the purposes of this section,—
(i) "relevant previous years" means,—
(A) in a case where the spectrum fee is actually paid before the commencement of the business to operate telecommunication services, the previous years beginning with the previous year in which such business commenced;
(B) in any other case, the previous years beginning with the previous year in which the spectrum fee is actually paid,
and the subsequent previous year or years during which the spectrum, for which the fee is paid, shall be in force;
(ii) "appropriate fraction" means the fraction, the numerator of which is one and the denominator of which is the total number of the relevant previous years;
(iii) "payment has actually been made" means the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee or payable in such manner as may be prescribed.'.
Section 16, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Referred to by 1

s. Fifteenth Schedule Fifteenth Schedule

Questions about Section 16

What does Section 16 of the Finance Act deal with?

Section 16 of the Finance Act is headed "Insertion of new section 35ABA". Insertion of new section 35ABA. 16. After section 35AB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2017, namely:— '35ABA.

How do I find court cases under Section 16 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 16, section 16 Finance Act 2016, section 16 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 16 of the Finance Act, and has it changed?

Its own text turns on section 154 (Amendment of section 78A), Income-tax Act 35AB (Expenditure on know-how), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was Section 16 of the Finance Act enacted?

Section 16 of the Finance Act, cited as Finance Act 2016 16, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule21791 words
Eighth Schedule. Eighth Schedule19903 words
First Schedule. First Schedule8145 words
2. Income-tax3742 words
222. Insertion of new Chapter III F2100 words
70. Substitution of new section for section 1531931 words

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.

(a)		the deduction shall be deemed to have been wrongly allowed;
(b)		the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the total income of the assessee for the said previous year and make the necessary rectification;
(c)		the provisions of section 154 shall, so far as may be, apply and the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the failure to comply with the provisions of this section takes place.".

(A)		in a case where the spectrum fee is actually paid before the commencement of the business to operate telecommunication services, the previous years beginning with the previous year in which such business commenced;
(B)		in any other case, the previous years beginning with the previous year in which the spectrum fee is actually paid,
		and the subsequent previous year or years during which the spectrum, for which the fee is paid, shall be in force;

(ii)		"appropriate fraction" means the fraction, the numerator of which is one and the denominator of which is the total number of the relevant previous years;
(iii)		"payment has actually been made" means the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee or payable in such manner as may be prescribed.'.