Expenses by candidates in contesting elections to Parliament and State Legislatures can be allowed as deduction while framing income-tax assessment. - Income Tax - 953/CBDT

INSTRUCTION NO. 953/CBDT Dated : May 5, 1976 Section(s) Referred: 37 Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction (F.No.200/15/70-IT(AI) dated the 22 May 1970 and Instruction No.832 (F.No.200/26/75-IT(AI) dated 8 May 1975). 2. Board has examined the question whether expenses incurred by candidates in contesting elections to Parliament and State Legislatures can be allowed as a deduction while framing the income-tax assessment under the provisions of the Income-tax Act 1961. The Board is of the view that the expenses incurred in contesting the elections will not be allowable as a deduction while computing the income of a candidate irrespective of the fact whether he has won or lost the election.