Distribution on festival

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SHREEPAL LALWANI (Querist)

16 October 2014 Mithai Distributed on the festival of Diwali whether eligible for deduction under income tax act or not?

Approx Rs. 1 Lac mithai distributed whether I can take benifit of this under income tax act or not?

Please inform as early as possible.

CA Siddharth Mehra

CA Siddharth Mehra (Expert)

17 October 2014 yes, you can take the deduction if the mitahi is distributed for business purpose i.e. distributed to employees and clients.

SHREEPAL LALWANI

SHREEPAL LALWANI (Querist)

17 October 2014 But Sir,

if i am doing business of trading in electronics item and mithai of Rs. 1 Lac distributed on the festival of diwali till i can take deduction for mithai distribution to client and employees. is there any limit for this?

Chinay Solanki

Chinay Solanki (Expert)

17 October 2014 No limit as far as the expenditure is incurred for business. In your case the expenditure is fully allowable

CA Bajrang Jhawar

CA Bajrang Jhawar (Expert)

17 October 2014 In Accounting it can be shown under the head " Festival Celebration"

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