Inadmissible Expenses under Income Tax law

Inadmissible Expenses 

The following expenses have been declared as inadmissible expenses in Income from business under Income Tax law:
1.      Donation to approved/unapproved institutions
2.      Charity to unapproved institutions
3.      Litigations expenses to acquire the title of capital asset
4.      Legal Expenses (criminal prosecution against employee)
5.      Initial Expenses
6.      Cost of issue of shares
7.      Cost of issue of Debentures
8.      Fines and penalties
9.      Provision/Reserve for bad debts
10.  Bad debts recovered
11.  Bad debts not recognized
12.  Income tax paid
13.  Accounting Depreciation
14.  Income not recorded in books
15.  Travelling expenses not verified
16.  Advertisement cost of new signboard
17.  Loss of embezzlement after working hours
18.  Administration expenses for Expansion of plant
19.  cess, rate or tax levied on profits or as proportion of profits or in respect of premises
20.  Liquidated damages
21.  Provision for taxation
22.  Tax deducted at source
23.  Provision for gratuity
24.  Brokerage
25.  Commission
26.  Any payment of a fine or penalty for the violation of any law or rule or regulation. 
27.  Cost of software
28.  Salaries paid without deduction of tax
29.  Interest, salary etc. paid to members of an association;
30.  Any contribution to
                                i.            un-recognized provident fund
                              ii.            unapproved pension
                            iii.            superannuation
                            iv.            gratuity funds
31.  Any allowance in respect expenditure on entertainment
32.  Any personal expenditure. 
33.  Any amount carried to a revenue fund or capitalized in any way.

34.  Any capital expenditure. However, depreciation or amortization shall be allowed in respect of a depreciable asset, intangible or pre-commencement expenditure.

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