Salary deduction

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samy123

anyalst

32 Points Posted on 22 January 2013

Hello, I have one question if any one can help me out. My wife is a Government Employee and she has re- paid a sum of around 40000 as a loan (All bank transactions) to her relative towards the Marriage expenses Loan (helping her dad towards financial Crunch). I know that there is no Provison in Salary for claiming this loan deduction unlike Business and profession where we have U/S 37 as a Joker Card.

Can this Case qualify for "Genuine Hardship to the Assesse and can be claimed as a special Order for dedcution from the Board.

Replies (2)

CA. Ankit Bhansali

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123 Points Posted on 04 February 2013

u cant claim any exemption for loan repaid especially since it was taken for making expense and not for earning income.

this expenses cant be claim also u/s 37 also since not related to business

no where u can get deduction..

if nebody suggest you to take deduction please explain me too

Guest

Posted on 04 February 2013

Ankit is absolutely correct. You can't claim such expenses as deduction in any provision of the Income Tax act.

Now your second question: Is this Genuiune Hardship?

The ans is no, In Income Tax Act, you only allowed the deduction of expenses incurred to earn income.

If you incurred any expenditure whic has no nexus with any Income earned or it is not incurred for the purpose to earn income, It shall not be allowed as deduction.

Genuine Hardship

Read more at: /forum/salary-deduction-235944.asp#.UQ9uc1JSQis?