section 37

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k suresh babu (Querist)

19 January 2009 what is the section 37 exemption for corporate companies. how much limit in section 37. please give me the full details of section 37 of income tax act for comapnies

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

19 January 2009 those exp which are not covered in sec 30 to 36 are covered in sec 37

General deduction available under Section 37:

This is the Residual Section for claiming deduction under the head of Business Income, i.e., any expenditure that does not fit under the above sections for deduction can be claimed here if such expenditure satisfies the following conditions:-

Condition

Description

I

The Expenditure should not be eligible for deduction u/s 30 to 36, discussed above.

II

It should not be an expenditure of capital nature.

III

It should not be a personal expenditure of the assessee.

IV

It should have been incurred in the Previous year.

V

It should be in respect of the business carried on by the assessee.

VI

It should have been expended wholly & exclusively expended for the purpose of assessed business.

VII

It should not have been incurred for any unlawful purpose which is an offence or is prohibited by any law, e.g., Expenditure on bribing Govt. Authorities/ Penalty paid on Tax dues etc.

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