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Which Expenses are Considered as "Expenses Not Deductible"

The following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”,—

1.   Any interest, royalty, fees for technical services or other sum chargeable under this Act, which is payable,—

(A) Outside India; or

(B) In India to a non-resident, not being a company or to a foreign company

on which tax is deductible at source and such tax has not been deducted or, after deduction, has not been paid during the previous year, or in the subsequent year before the expiry of the time.

2. Any interest, commission or brokerage,, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or subcontractor, being resident, for carrying out any work, on which tax is deductible at source and such tax has not been deducted or, after deduction, has not been paid,—

3. Any sum paid on account of securities transaction tax

4. Any sum paid on account of any rate or tax levied on the profits or gains of any business or profession or assessed at a proportion of, or otherwise on the basis of, any such profits or gains is not deductible.

5. any sum paid on account of wealth-tax.

6.   any payment which is chargeable under the head “Salaries”, if it is payable—

(A) outside India; or

(B) to a non-resident,

and if the tax has not been paid thereon nor deducted therefrom.

7.   Any payment to a provident or other fund established for the benefit of employees of the assessee, unless the  tax shall bededucted at source from any payments made

8.  
Where the assessee incurs any expenditure in respect of which payment is made in a sum exceeding twenty thousand rupees (Rs.20,000) otherwise than by an account payee cheque drawn on a bank or account payee bank draft, no deduction shall be allowed in respect of such expenditure.

9.  
Where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person is of opinion that such expenditure is excessive or unreasonable having regard to the fair market value of the goods, services or facilities for which the payment is made shall not be allowed as a deduction.

10. N
o deduction shall be allowed in respect of any provision made by the assessee for the payment of Gratuity to his employees on their Retirement or on Termination of their employment for any reason.

Topics...on ‘Profits and Gains of Business or Profession’

Define … ‘Profits and Gains of Business or Profession’ and its Computation (Section 28)
Method of Accounting for Computing Business Income (Section 145)
Principles for Allowing Business Deductions / Allowances from Profits and Gains of Business or Profession.
Expenses Allowed as Deductions against Profits and Gains of Business or Profession [Section-30-37]
[Section 37(1)] : General Or Allowable Deductions under Business or Professions
Business Losses Deductible under the head  'Profits and Gains of Business or Profession'.
Expenses Not Deductible under the head 'Profits and Gains of Business or Profession (Section 40, 40A, 43B)
DEEMED PROFITS Chargeable to Tax as Business Income Under Profits and Gains of Business or Professions [Section 41]
Taxation of Undisclosed Business Income/Investments from Undisclosed Sources
Deduction in respect of Expenditure incurred on setting up of a Specified Business [Section-35AD] :
When Maintenance of Books of Accounts becomes Compulsory (Section 44AA)
Compulsory Audit of Books of Accounts by Chartered Accountant (Section 44AB)
Computation of Income On Estimated Basis Under Sections 44AD, 44ADA and 44AE
 
 
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Taxation in Business & Profession [Section 28 to 44]
Taxation in Business & Profession [Section 28 to 44]

Computation of income under the head 'Profits and Gains of Business or Professions' [Section 28 to 44]

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Tax Computation with Assessment of Salaried Person, HUF, Individuals
Tax Computation with Assessment of Salaried Person, HUF, Individuals.

Computation of Income with Assessment Under the Head 'Salary', 'HUF', 'Individuals'.


Indivisuals
HUF
Salaried Person
 
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