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Payment to police & 20,000 for protection

Internal Audit 2469 views 17 replies

can Income Tax department allow payment more than Rs.20,000 in cash pay to Police department for protection to Intimidate..

Replies (17)

Illegal payments are not allowed under any circumstances

Take receiept from police then it is allowable otherwise illegal payment not allowed for deduction.
In this case also the deduction will not be allowed.
For claiming deduction, you will also be required to deduct TDS (if applicable). Further, the amount cannot at all be given to police in black so as to claim it as security expenses. Further, they will not take the amount in white.
These types of expenses are not allowable at all in Income Tax.

Hi,

Refer this

 

Payment of Protection Money to Rowdies & Police:  In the another landmark judgment decided by Karnataka High Court that any payment to police or rowdies for getting protection from them is illegal and should not be allowed. Refer CIT v Neelavathi & Others 322 ITR 643 (2010).

 

its a illegal expenses, given which is not required to give under government act....... so no question it\ will be disallowed.

To whom it is needed - saving karthik

undoubtedly illegal expense ...

and hence not allowed as deduction. simple logic

i dont think IT department.. will allow these payment as deduction otherwise everyone will take this advantage to save their taxes...

ABSOLUTELY NOT ALLOWED

Not Allowed,

HOWEVER DO CLAIM IT BY TAKING A FAKE BILL FOR ANY EXPENSE,ie , ADJUST UNDER ANY EXPENSE HEAD.

undoubtebly this payment is not allowed under37(1). However ransom money paid to free director is allowed as per CIT VS  khemchand motilal tobacco products(p) ltd(madhay pradesh)

Whether Legal or illegal, the payment made for protection is not allowed.


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