9911796707
TMI BlogOther deductionsX X X X Extracts X X X X X X X X Extracts X X X X ..... ral Government; or (B) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); ] (ii) any sum paid to an employee as bonus or commission for services rendered, where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission; 4 [ * * * ] 5 [ * * * ] (iia) 6 [***] (iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession : 7 [Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset 72 [***] (whether capitalised in the books of account or not); for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which such asset was first put to use, shall not be allowed as deduction. ] Explanation .- Recurring subscriptions paid periodically by shareholders, or subscribers in Mutual Benefit Societies which fulfil such conditions as may be prescribed, shall be deemed to be capital borrowed within the meaning of this clause; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise ;] 80 [Explanation 2. For the removal of doubts, it is hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the due date under this clause; ] (vi) in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses or animals; (vii) subject to the provisions of sub-section (2), the amount of 11 [ any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year ]: 12 [Provided that in the case of 13 [ an assessee ] to which clause (viia) applies, the amount of the deduction relating to any such debt or part thereof shall be limited to the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassified by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued by it in this behalf, for an amount not exceeding five per cent of the amount of such assets shown in the books of account of the bank on the last day of the previous year: ] 22 [Provided further that for the relevant assessment years commencing on or after the 1st day of April, 2003 and ending before the 1st day of April, 2005, the provisions of the first proviso shall have effect as if for the words five per cent , the words ten per cent had been substituted : ] 23 [Provided also that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed a further deduction in excess of the limits specified in the foregoing provisions, for an amount not exceeding the income derived from redemption of securities in accordance with a scheme framed by the Central Government: Provided also that no deduction shall be allowed under the third proviso unless such income has been disclosed in the return of income under the head Profits and gains of business or profession. ] 24 [ Explanation .- For the purposes of this sub-clause, relevant asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) 31 [ *** ] ; ] 32 [ (iii) public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (iv) State financial corporation means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951); (v) State industrial investment corporation means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing long-term finance for industrial projects and 33 [ eligible for deduction under clause (viii) of this sub-section ];] 34 [ (vi) co-operative bank , primary agricultural credit society and primary co-operative agricultural and rural development bank shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P ;] 76 [ (vii) non-banking financial company shall have the mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes; (f) public company shall have the meaning assigned to it in section 3 of the Companies Act, 1956(1 of 1956) ; (g) infrastructure facility means- (i) an infrastructure facility as defined in the Explanation to clause (i) of sub-section (4) of section 80-IA, or any other public facility of a similar nature as may be notified by the Board in this behalf in the Official Gazette and which fulfils the conditions as may be prescribed; (ii) an undertaking referred to in clause (ii) or clause (iii) or clause (iv) or clause (vi) of sub-section (4) of section 80-IA; and (iii) an undertaking referred to in sub-section (10) of section 80-IB; (h) long-term finance means any loan or advance where the terms under which moneys are loaned or advanced provide for repayment along with interest thereof during a period of not less than five years; ] (viiia) 47 [ * * * ] 48 [ (ix) any expenditure bona fide incurred by a company for the purpose of promoting family planning amongst its employees: Provided that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ystem capable of correctly processing, providing or receiving data relating to date within and between the twentieth and twenty-first century ;] 54 [ (xii) any expenditure (not being in the nature of capital expenditure) incurred by a corporation or a body corporate, by whatever name called, if,- (a) it is constituted or established by a Central, State or Provincial Act; (b) such corporation or body corporate, having regard to the objects and purposes of the Act referred to in sub-clause (a), is notified by the Central Government in the Official Gazette for the purposes of this clause; and (c) the expenditure is incurred for the objects and purposes authorised by the Act under which it is constituted or established; ] 55 [ (xiii) any amount of banking cash transaction tax paid by the assessee during the previous year on the taxable banking transactions entered into by him. Explanation .-For the purposes of this clause, the expressions banking cash transaction tax and taxable banking transaction shall have the same meanings respectively assigned to them under Chapter VII of the Finance Act, 2005. ] 64 [ (xiv) any sum paid by a public financial institution by way of contribution to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the assessee ;] (ii) if the amount ultimately recovered on any such debt or part of debt is less than the difference between the debt or part and the amount so deducted, the deficiency shall be deductible in the previous year in which the ultimate recovery is made; (iii) any such debt or part of debt may be deducted if it has already been written off as irrecoverable in the accounts of an earlier previous year 57 [ (being a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year) ], but the 58 [ Assessing ] Officer had not allowed it to be deducted on the ground that it had not been established to have become a bad debt in that year; (iv) where any such debt or part of debt is written off as irrecoverable in the accounts of the previous year 59 [ (being a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year) ] and the 60 [ Assessing ] Officer is satisfied that such debt or part became a bad debt in any earlier previous year not falling beyond a period of four previous years immediately preceding the previous year in which such debt or part is writte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided that the assessee produces before the Assessing Officer, in respect of the first assessment year for which deduction is claimed in relation to each such employee under this clause,- (i) in a case referred to in sub-clause (a), a certificate as to his total blindness from a registered medical practitioner being an oculist; and (ii) in a case referred to in sub-clause (b), a certificate as to the permanent physical disability referred to in the said sub-clause from a registered medical practitioner : Provided further that nothing contained in this clause shall apply in the case of an employee whose income in the previous year chargeable under the head Salaries exceeds twenty thousand rupees. Explanation 1.- In this clause, salary includes the pay, allowances, bonus or commission payable monthly or otherwise. Explanation 2.- For the removal of doubts, it is hereby declared that where a deduction under this clause is allowed for any assessment year in respect of any expenditure, deduction shall not be allowed in respect of such expenditure under any other provision of this Act for the same or any other assessment year;' 7. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment under clause (viii) of this sub-section by the Finance Act, 2000, w.e.f. 1-4-2000. 34. Inserted by the Finance Act, 2007, w.e.f. 1-4-2007. 35. Operative part of this clause was amended by the Finance Act, 1966, w.e.f. 1-4-1966, Finance (No. 2) Act, 1967, w.e.f. 1-4-1968, Finance (No. 2) Act, 1971, w.e.f. 1-4-1972 and Finance Act, 1974, w.e.f. 1-4-1975. 36. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 37. Substituted for the portion beginning with the words industrial or agricultural development in India and ending with the words such reserve account : by the Finance Act, 1995, w.e.f. 1-4-1996. Prior to its substitution, the quoted portion, as amended by the Finance Act, 1979, w.e.f. 1-4-1980 and the Finance Act, 1985, w.e.f. 1-4-1985, read as under: industrial or agricultural development in India or by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes, an amount not exceeding forty per cent of the total income (computed before making any deduction under this clause and Chapter VI-A) carried to such reserve account: 38. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of this clause, scheduled bank has the same meaning as in clause (ii) of the Explanation to clause (viia);' 48. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965. 49 . Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. 50. Inserted by the Finance Act, 1989, w.e.f. 1-4-1989. 51. Substituted for any fund specified under clause (23E) of section 10 by the Finance Act, 2003, w.e.f. 1-4-2003 52. Clause (x) omitted by the Finance Act, 2007, w.e.f.1-4-2008 before omission it was read as, (x) any sum paid by a public financial institution by way of contribution towards 51 [ any Exchange Risk Administration Fund set up by public financial institutions, either jointly or separately Explanation .-For the purposes of this clause, public financial institutions shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); ] 53. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 54. Substituted by the Finance Act, 2007, w.e.f. 1-4-2008. Prior to substitution it was read as under: ( xii ) any expenditure (not being in the nature of capital expenditure) incurred by a corporation or a body corporate, by whatever name called, constituted or establ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facility in India or by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes, an amount not exceeding forty per cent of the profits derived from such business of providing long-term finance (computed under the head Profits and gains of business or profession 38 [ before making any deduction under this clause ] ) carried to such reserve account: ] 39 [ *** ] Provided 40 [ *** ] that where the aggregate of the amounts carried to such reserve account from time to time exceeds 41 [ twice the amount of ] the paid-up share capital 42 [ and of the general reserves ] of the corporation 43 [ or, as the case may be, the company], no allowance under this clause shall be made in respect of such excess. 44 [ Explanation. -In this clause,- ( a ) financial corporation shall include a public company and a Government company; ( b ) public company shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956); ( c ) Government company shall have the meaning assigned to it in section 617 of the Companies Act, 1956 (1 of 1956); ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
