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Section 36(1)(ix) - Expenditure on promotion of family planning - Income Tax - Ready Reckoner - Income TaxExtract Section 36(1)(ix) : EXPENDITURE ON PROMOTION OF FAMILY PLANNING Any revenue expenditure bona fide incurred by a company for the purposes of promoting family planning amongst its employees is allowed as deduction in the year in which it is incurred. However, capital expenditure shall be allowed as deduction in 5 years in equal installments. Notes:- No deduction is available u/s 36(1)(ix) in the case of non-corporate assessee. A non-corporate assessee may claim deduction under section 32 and 37(1) if relevant conditions satisfied. Where profits of the business are not sufficient to absorb any capital or revenue expenditure, then the balance shall be treated as unabsorbed expenditure on family planning and shall be treated as same as of unabsorbed depreciation. If deduction is claimed and allowed u/s 36(1)(ix) , then no deduction is available under any other provisions of the Act. In the cases given below, the provisions of section 35 and 41 regarding capital expenditure on scientific research shall be applied: when an asset purchased for promotion of family planning amongst employees is sold without putting it to some other use; when such asset is used for the business of the company after it ceases to be used for family planning purposes.
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