9911796707
TMI BlogDetermination of operating expenditure.X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of expenditure on, or on account of,— (i) purchase of raw material, stores, spares and consumables, or stock-in-trade; (ii) rent paid for any premises if it is occupied and used by the person; (iii) current repairs to buildings if it is occupied and used by the person; (iv) land revenue, local rates or municipal taxes in respect of premises occupied and used by the person is actually paid; (v) current repair of machinery, plant or furniture used by the person; (vi) current maintenance or repairs of computer software or hardware; (vii) salary or wages of employees; (viii) remuneration to any working participant which is in accordance with the agreement of the unincorporated body and relates to the period falling after the date of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elated to the business; (xxviii) salary to an employee engaged in, or the purchase of material used in, scientific research and development, within a period of three years immediately preceding the commencement of the business; (xxix) contribution by the person, being an employer, to an approved fund subject to such limits and conditions, as may be prescribed and to the extent the amount is actually paid; (xxx) contribution to any fund, referred to in clause (xvi) of sub-section (2) of section 33, to the extent,— (a) the amount has been received from his employees as their contribution to the fund; and (b) it is actually paid; (xxxi) any head office expenditure by a non-resident, as is attributable to his business in India, not exceeding an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces rendered if— (a) the amount would not have been payable to employees as profits or dividends had it not been paid as bonus or commission; and (b) the amount is actually paid; (xxxvii) encashment of leave to the credit of employees, to the extent the amount is actually paid; (xxxviii) gratuity to employees on their retirement or on termination of their employment, to the extent the amount is actually paid; (xxxix) the purposes of a body corporate constituted or established under a Central, State or Provincial Act, if— (a) such purposes are authorised by the said Act; (b) such body corporate is notified by the Central Government for the purposes of this clause; (xl) the amount paid by a public financial institution by way of contribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss account for the financial year in accordance with the prudential norms of the Reserve Bank of India in this regard; and (iii) the amount of trade debt or part thereof written off as irrecoverable in the books of the person is debited to the provision for bad and doubtful debts account; (d) the debit balance, if any, on the last day of the financial year, in the provision for bad and doubtful debts account made under clause (c), if the balance has been transferred to the profit and loss account of the financial year; (e) trade debt or part thereof, if,— (i) the person is other than a person referred to in sub-clause (i) of clause (c); and (ii) the amount is written off as irrecoverable in the books of the person; (f) payment during the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition specified therein, shall not be allowed as deduction under clause (xliv) of sub-section (2) on the ground that it is laid out or expended, wholly and exclusively, for the purposes of business. (6) The deduction in respect of the amount referred to in clauses (iv), (xxx) and clauses (xxxv) to (xxxviii) of sub-section (2) shall, notwithstanding anything contained in subsection (1), be allowed in the financial year in which the liability has arisen, if it is paid in the financial year or by the due date of filing return of tax bases of that financial year. (7) If any deduction is not allowed on account of the provisions of sub-section (6), it shall be allowed in the financial year in which the amount is actually paid. - - statute, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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