General Deductions-Section 37, Income Tax

[Poornima Gupta]

Section 37 - General - Income-tax Act, 1961 (taxmanagementindia.com)

(2B) Notwithstanding anything contained in sub-section (1), no allowance shall be made in respect of expenditure incurred by an assessee on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party.

Q. Why such expenditure is not allowed under IT Act?

Posts / Replies

[Padmanathan Kollengode]

Poornima Gupta, I think because deduction is given under section 80GGC in respect of contribution to political parties, the disallowance in Sec. 37 may be to prevent double benefit of the same.