Amrutha.R.P (Article assistant) (24 Points)
16 September 2011Hi friends,
My query is that when a Co-operative bank pays a penalty levied by RBI ... Such a penalty paid by the co-operative bank is an admissible or inadmissible expense....... Waiting for your answers....
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 16 September 2011
I think it is inadmissible expenses, let's see others view also
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 16 September 2011
penalties are not allowed as deduction
Nitin Singhal
(Gaining knowledge...)
(320 Points)
Replied 16 September 2011
Penalties are of two types : 1) Penalty for breach of Law 2) penalty for not fulfilling contractual obligations
Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax.
Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible
CA Shammi Prabhakar
(Managing Director)
(2076 Points)
Replied 16 September 2011
NO.. not admissible..
CA Sumiit B Nagpal
(Business)
(1077 Points)
Replied 17 September 2011
| Originally posted by : Nitin Singhal | ||
 |
Penalties are of two types : 1) Penalty for breach of Law 2) penalty for not fulfilling contractual obligations Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax. Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible |
 |
AGREED
CA SHAH DILEEPKUMAR
(PARTNER)
(144 Points)
Replied 17 September 2011
vipul jain
(EFFORTS NEVER FAIL)
(2894 Points)
Replied 17 September 2011
| Originally posted by : Nitin Singhal | ||
|
|
Penalties are of two types : 1) Penalty for breach of Law 2) penalty for not fulfilling contractual obligations Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax. Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible |
|
Ravindra kumar
(student)
(87 Points)
Replied 17 September 2011
| Originally posted by : Nitin Singhal | ||
 |
Penalties are of two types : 1) Penalty for breach of Law 2) penalty for not fulfilling contractual obligations Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax. Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible |
|
PRADEEP REDDY
(CHARTERED ACCOUNTANT)
(664 Points)
Replied 17 September 2011
any expense which is made for breach of any law is not allowed as deduction under I.T act
Mayank
(Sr.Accountant)
(152 Points)
Replied 18 September 2011
it is not admisible expense because any kid of penalties are not allowable in income tax.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 18 September 2011
|
Penalties are of two types : 1) Penalty for breach of Law 2) penalty for not fulfilling contractual obligations Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax. Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible |
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