sec 14 A

hello 14a deals with expenses related to exempt income
calculation .
1 directly u know what all expenses are incurred for earning the exempt income. here just disallow the deduction. so if in balance sheet if u have taken as expenses , add it back
2. not to find the expenses directly. it means u don't know what all expenses are incurred for to earn the exempt income. then u need to follow the rules.
rules 8d.
step 1 find the monthly avg of opening and closing of the amount of investment made in exempt income
step 2 step 1 divide by 12. this is taking annual avg.
step 3 take 1% of the step 2 result.
now u can disallow the value in step 3 . it means add back the step 3 value in balance sheet.