Whether deduction is available
This query is : Resolved
17 November 2010
My client is a Doctor. He has paid Rs. 75000/- to the Govt. for not working in small village for the particular period specified in Bond given at the time of study.
So whether this amount is deductible under Income Tax Act.
So whether this amount is deductible under Income Tax Act.
17 November 2010
In income tax amount is deductible only when it has got direct nexus with the profession.
This agreed amount payable by him or liability created by the assessee is pertaining to the earlier years when he was not carrying on any profession.
In such circumstances the liability can not be treated his professional liability. In my opinion he should not claim deduction of the amount paid as penalty, compensation or by whatever name in the given circumstances.
This agreed amount payable by him or liability created by the assessee is pertaining to the earlier years when he was not carrying on any profession.
In such circumstances the liability can not be treated his professional liability. In my opinion he should not claim deduction of the amount paid as penalty, compensation or by whatever name in the given circumstances.
17 November 2010
The expenditure incurred is not in relation to earing income under the head "income from business or profession". Therefore, deduction under section 37(1) cannot be claimed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
