Search results
Section 37 of Income Tax Act provides deductions on business expenditure excluding capital expenses and the assessee’s personal expenses. It contains a list of expenditure which are applicable for deductions and the ones which are disallowed.
- Expenses Disallowed Under Pgbp
Certain expenditures are not allowed for deductions in...
- Expenses Disallowed Under Pgbp
Inadmissible Expenses [Section 58] (i) Personal expenses. (ii) Wealth – tax. (iii) Expenses of the nature described in Section 40 A. (iv) Interest and salary payable outside India, if tax has not been paid or deducted at. source. (v) No deduction shall be allowed in respect of winnings from lotteries, cross word.
- Cess Rates or Tax. Any rate or tax levied on profit or gain of the business is not allowed as expense. Whether it is paid or payable by a person in Pakistan or outside the Pakistan.
- Sum paid to Non Resident. Any salary interest profit rent fee brokerage commission or any amount which is chargeable to tax paid to a non-resident is not deductible expense.
- Remuneration to Member By AOP. Any amount of salary interest and profit on debt commission or other remuneration paid to its members by an association of person is not admissible as deductions of AOP.
- Fine or Penalty Paid. Any sum paid or payable by a person as fine or penalty on violation of any law, rule of regulation is a not admissible expense for the purpose of tax.
Sep 8, 2018 · Certain expenses cannot be allowed as deduction. Section 40 & 40A of the Income Tax Act, 1961 specified it. The provisions of section 40 (a) is discussed here. Section 40 (a) start with the wording “Notwithstanding anything contrary in section 30 to 38”.
Mar 8, 2016 · (a) Any sum paid outside India (on account of any rate or tax levied) which is eligible for tax relief under section 90 or deduction from the income-tax payable under section 91 is not allowable and is deemed to have never been allowable as a deduction under section 40 (a).
Apr 15, 2024 · 6. Meaning of ‘Offences/Prohibited by Law’ Explanation 1 to Section 37(1), any expenditure which is: Offence, Prohibited by Law; are inadmissible expenses under PGBP.
Certain expenditures are not allowed for deductions in income tax return. If TDS is not deducted or paid improperly, certain expenses are disallowed. Rules differ for payment outside India, to residents, and in cash. Payment exceeding Rs. 10,000 in cash for certain expenditures is disallowed.
