Whether Gifts given to Directors and Members of the Company an Allowable expenditure in the hands of Company as per Section 37 of the Income Tax Act, 1961
Basavaraj Toragal (Student) (26 Points)
26 November 2012Whether Gifts given to Directors and Members of the Company an Allowable expenditure in the hands of Company as per Section 37 of the Income Tax Act, 1961
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 26 November 2012
I dont think that gifts given to members would be allowable. However Directors who are associated in the management & working of the company, gifts given to them would be allowable subject to certain conditions i.e. it must be proved that they are being given so that it would be incidental in efficient working of the company.
Members are not associated with the working of company, so gifts given to them would be disallowed.
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