Hi 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....
Hi 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....
I think it is inadmissible expenses, let's see others view also
penalties are not allowed as deduction
Not admissible
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
NO.. not admissible..
| 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
| 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 |
|
| 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 |
|
any expense which is made for breach of any law is not allowed as deduction under I.T act
it is not admisible expense because any kid of penalties are not allowable in income tax.
|
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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