General Deduction :
For instance the following expenditure are deductible u/s 37(1):
(a) Expenditure on advertisement in souvenirs by trade, commerce and industry, including more than one souvenir published by the same organisation or institution
(aa) Expenses incurred in providing freebees to Medical Prectitioner by pharmaceutical and allied health sector Industry.
(b) Revenue expenses incurred by the industrial undertakings in connection with maintenance of industrial home-guard units
(c) Expenditure (other than that of enduring nature) on civil defence measures
(d) Recurring expenses incurred on imparting of basic training to the apprentices under the Apprentices Act, 1961
(e) Annual listing fee payable to stock-exchanges
(f) Commitment charges paid by the borrower on the unused portion of loan which has not been drawn but kept in readiness by lender for disbursement
(g) Managerial subsidy paid in connection with setting up of consumer co-operative stores for industrial workers.
(h) Rebate or bonus allowed by a consumer co-operative stores, on purchases made by member
(I) Customary expenses in respect of Diwali and Mahurat, excluding expenses of a personal, social or religious nature
(j) Reasonable remuneration paid by a company to its registrars for performing the duties in connection with company’s legal obligations under the Company Law
(k) Interest payable on unpaid purchase price of plant and machinery
(I) Membership fee for the Indian Institute of Foreign Trade
(m) Membership subscription paid to Indian Institute of Packaging
(n) The salaries and wages paid to the employees for the period of training in the courses organised by the Central Board of Workers’ Education
(o) Payments made to the employees under profit sharing schemes
(p) Customary Laga contributions paid to trade associations for utilisation for charitable purposes.
(q) Deposit made under Own your telephone scheme’
(r) Deposit under Tatkal Telephone Deposit Scheme’
(s) Admissibility of Ex-gratia amount paid by assessees for granting enduring benefit or advantage under Voluntary retirement scheme (VRS)-
(t) the Board have disallowed the claim of harvesting and transportation expenses incurred by the Cooperative sugar mills for producing sugarcane from farmers-
(u) Professional tax paid by a person carrying on business.
(v) Security deposit of Rs. 10,000 required to be made for an existing or new telex connection
(w) Contribution to unrecognised Executive Staff Provident Fund [-
(x) Payment though referred to as penalty, but in fact made in exercise of option available under statutory scheme, in course of assessee’s business, is allowable business expenditure –
(y) The amount of broken period interest paid by the bank cannot be claimed as allowable deduction from the income of the bank.