Sunit Pareek (Student(final)-Article) (93 Points)
24 May 2012Hello friends,
A friend of mine asked a query, I was unable to reply. Is there anyone here, who can help me out?
He is currently employed at a firm, and has salary income of Rs. 5 lakh. he is also pursuing PhD and is spending around Rs. 1.5 lakh on the research work. Can he claim exemption of this expense on research, by showing a business loss under PGBP??
What is your view?
PANJ and Associates
(Corporate Consultants)
(30 Points)
Replied 24 May 2012
According to my view
Assuming..
1] he is currently employed at a PROFESSIONAL firm,
2] His firm allowed him to carry on profession
3] Research work are related with is profession
Then..
he can he claim DEDUCTION of this expense on research against the showing a business loss under PGBP.
Regards,
PCV
gbalakrishnan
(owner)
(1373 Points)
Replied 25 May 2012
He needs to take appropriate certificate from the university/college that hs is pursuing a phd program and the course fee and expences should be stated and when he files returns that educational expenses is to upgrade his knowledge to better his life or f the company gives a certificate that he needs advanced training and advanced degrees for him to keep his job, naturally tax officer can use his discretion and allow the expences and if not allowed he can approach CIT Appeals and he has to quote appropriate judgements of courts on education advancement or if HRD ministry issued any notifications that advanced degree degree pursuers can avail tax exemption, then one can get it.
So one should clearly note things are not just a cake walk but one needs to put and convince the appropriae courts/tribunals afer all all these quasi judiciary need to deliver judgements on application of natural justice principles, after all income tax laws or rules are just transitory regulations modified from time to time unlike substantial laws.
Income tax is jst based upon finance bills every year surface, several times make a lot of mistakes, so till 1995/96 or so there are more than 3300 modifications in tax laws pls...dr g balakrishnan phd(economics) M.L (contracts), a senior advovate and supreme court counsel.
gbalakrishnan
(owner)
(1373 Points)
Replied 25 May 2012
He needs to take appropriate certificate from the university/college that hs is pursuing a phd program and the course fee and expences should be stated and when he files returns that educational expenses is to upgrade his knowledge to better his life or f the company gives a certificate that he needs advanced training and advanced degrees for him to keep his job, naturally tax officer can use his discretion and allow the expences and if not allowed he can approach CIT Appeals and he has to quote appropriate judgements of courts on education advancement or if HRD ministry issued any notifications that advanced degree degree pursuers can avail tax exemption, then one can get it.
So one should clearly note things are not just a cake walk but one needs to put and convince the appropriae courts/tribunals afer all all these quasi judiciary need to deliver judgements on application of natural justice principles, after all income tax laws or rules are just transitory regulations modified from time to time unlike substantial laws.
Income tax is jst based upon finance bills every year surface, several times make a lot of mistakes, so till 1995/96 or so there are more than 3300 modifications in tax laws pls...dr g balakrishnan phd(economics) M.L (contracts), a senior advovate and supreme court counsel.
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