Clause 18 - Expenditure not to be allowed as deduction. - Direct Taxes Code, 2010

Expenditure not to be allowed as deduction. 18. (1) In computing the total income of a person for any financial year, the following shall not be allowed as a deduction, namely:— (a) any expenditure, attributable to income which is not included in the total income under the Sixth Schedule, determined in accordance with such method as may be prescribed; (b) any expenditure attributable to any income from special sources; (c) any expenditure which has been allowed as a deduction in any other financial year; (d) any expenditure incurred for an activity which is an offence or which is not permissible by law; (e) any provision made for any liability, if it remains unascertained by the end of the financial year; and (f) any unexplained expenditure referred to in clause (q) of sub-section (2) of section 58. (2) Any amount allowed as a deduction under any provision of this Code shall not be allowed as a deduction under any other provision of this Code. (3) The provisions of this section shall apply notwithstanding anything in any other provisions of this Chapter.