New Section in Income tax

 Section 14A of the Income-Tax Act, 1961 stipulates that for computing the income of an assessee, no deduction shall be allowed in respect of expenditure incurred by him in relation to income which does not form part of his total income under the Act. Sub-section (2) of Section 14A, inserted in the statute book with effect from April 1, 2007, further stipulates that the assessing officer (AO) shall determine the amount of expenditure incurred by the assessee in relation to such income in accordance with the prescribed method, if having regard to the assessee’s accounts, he is not satisfied with the correctness of his claim.