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Gram panchayat tax

rushi (article) (125 Points)

29 June 2012

Suppose A PARTNERSHIP FIRM has paid A Gram panchayt tax of rs 25000/- in june 2011

For the Assessment year 2012-2013, CAN I CLAIM A DEDUCTION FOR THE SAME UNDER THE INCOME TAX ACT?

IF YES, THEN WHAT SECTION REFERENCE DO I NEED TO REFER TO?

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Naresh Patel (C.A. Final) (144 Points)
Replied 29 June 2012

First you have to see the provision of sec 37(1), which says that related expense incurred entirally for business purpose. Here it has been paid for business premises... If yes then it will be covered under the head of rates and taxes. And then sec. 43(B) will have to be gone through since it mondates the assessee to pay the expense in the year itself, in which the assessee wants to claim as an expense...