Quick Summary
1. Section 37 of the Act provides for allowability of revenue and non-personal expenditure (other than those failing under sections 30 to 36) laid out or expended wholly and exclusively for the purposes of business or profession. Explanation 1 of sub-section (1) of section 37 of the Act provides tha
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Section 37 allows for the deductibility of revenue expenditure incurred wholly and exclusively for the purposes of business or profession, excluding specific categories mentioned elsewhere.
Expenditures incurred for any purpose that is an offence or prohibited by law, including benefits or perquisites provided to individuals where acceptance violates governing rules or regulations, are now clarified as not allowable.
Expenses incurred in providing benefits like gifts, travel, or hospitality to medical practitioners, which violate the Indian Medical Council's regulations, are inadmissible as deductible expenses.
Yes, the amendments clarify that expenditures for any purpose that is an offence under, or is prohibited by, any law in force in India or outside India are not allowable.
These amendments will take effect from 1st April 2022.
The new Explanation is intended to make the legislation clear and free from misinterpretation, specifically confirming that expenditures violating Indian or foreign laws, or those provided in violation of professional conduct rules, are not deductible.
CAclubindia
