Distribution on festival

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SHREEPAL LALWANI (Querist)
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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)
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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)
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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)
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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)
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17 October 2014 In Accounting it can be shown under the head " Festival Celebration"

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