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Allowability of expenditure

nitin suvarna (C.A FINAL) (828 Points)

02 April 2013

hi ,

whether expenditure incurred by firm for promotion of family planning is allowed ??any case law for the same.........

thx in advance

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4 Replies

Varun Jain (CA, B.com ) (392 Points)
Replied 02 April 2013

EXPENDITURE ON FAMILY PLANNING IS ALLOWED ONLY TO COMPANY AS PER INCOME TAX ACT---

L. [ SECTION 36(1)(ix)] : FAMILY PLANNING EXPENDITURE INCURRED BY COMPANY

Deduction in respect of Revenue Expenditure for promoting family planning amongst its employees is allowed as deduction and in case of Capital expenditure , 1/5 of expenditure incurred is allowed as deduction in 5 equal installment.

nitin suvarna (C.A FINAL) (828 Points)
Replied 07 April 2013

but why is it so?co can get deduction & firm does not ,firm should be able to get the dedn u/s37.............

COMPLETE TAX SOLUTIONS (MD) (50 Points)
Replied 14 April 2013

yes firm can claim deduction u/s 37 on a plea that it has spend these amount for the benefit of employees. In your case, instead of showing it as family planning expenditure show such exp. as staff welfare expenses etc