09 November 2013
please help me by giving clarrification regarding:
whether one can account traffic fine in books and is it allowable under income tax
Guest
Guest
(Expert)
10 November 2013
As per Income tax act- Any expenditure incurred/paid for breaking any rules and regulation in the form penalty or any other name except interest for late deposit/filling etc is not allowed deducted while calculating the income.
Under accounts:- The expenditure can debited to the Profit and Loss a/c.
10 November 2013
Agreed. Please refer to explanation to Section 37(1):
"For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure."
CAclubindia
