Sec. 14A r.w Rule 8D, Income Tax

[Venkatesan K]

Is it true that Rule 8D could render an assessee face more disallowances than the amount of exempt income? if yes, can anyone give an example to describe such a situation?

 Thank you,

 

Venkatesan.K

Posts / Replies

[DEV KUMAR KOTHARI]

No .

Expenses should be claimed as business expenses for business of adventure in nature of trade or commerce and expenses for  holding and carrying inventory or investment- trading or capital assets of business.

 

Such expenses are not expenses for earning dividend or LTCG.