14 February 2013
Section 35 is like a long tale and can not be told in a single Episode. It is full of turns & twists and you may require at least 3-4 readings to grasp it properly. However, the tips provided here may be quite useful to you. The highlights of the section-
1. This section is a path breaker and exceptional in the Income-Tax Act. The motive of the section is very much clearly borne into mind. . A. It allows expenditure of Capital Nature also. . B. It allows weighted deduction. If you spend Rs 100/ you can claim Rs 175/ or Rs. 125/- or Rs. 200/ as deduction. . C. It allows deduction in respect of amount donated to other institutions. . D. In some cases expenditure may or may not relate to the business of the assessee. . E. Certain Prior Period Expenditures are also allowed in the prescribed manner. . F. The assessee has to follow certain prescribed regulatory procedures to avail such deduction. . G. In some cases expenditure on land and building is allowed whereas in certain cases it is not allowed on land. .
If you read the section by keeping mind the aspects mentioned here in above,(Of course you may add certain other aspects also) I think you could be able to re-tell the tale as and when required.
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