TMI BlogDeduction for operating expenditureX X X X Extracts X X X X X X X X Extracts X X X X ..... amount of expenditure referred to in clause (a) of sub-section (1) shall be the amount of expenditure on, or on account of,- (i) purchase of raw material, stores, spares and consumables, or stock-in-trade; (ii) rent actually paid for any premises if it is occupied by the person and used by him; (iii) repairs to buildings if it is occupied and used by the person and the repairs are current in nature; (iv) land revenue, local rates or municipal taxes in respect of premises occupied and used by the person; (v) repair to, or replacement of parts of, machinery, plant or furniture used by the person, if the repair or replacement is current in nature; (vi) maintenance of computer software ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t; (xxi) postage and telecommunication; (xxii) audit and such other professional fee; (xxiii) legal expenses; (xxiv) entertainment and provision of hospitality; (xxv) maintenance of any accommodation in the nature of guest-house; (xxvi) subscription, including entrance fee, to a club or a trade association or the use of their facilities; (xxvii) festival celebration; (xxviii) salary to an employee engaged in, or on the purchase of material used in, scientific research and development, within three years immediately preceding the commencement of the business; (xxix) scientific research and development related to the business; (xxx) contribution by a person, being an employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donee; (b) the asset becomes the property of the person on the total or partial partition of a Hindu undivided family or under a gift or will or an irrevocable trust; and (c) the asset is sold by the person as a business trading asset; (xxxv) protecting or safeguarding the goodwill of the person, which has necessarily to be preserved for the purpose of his business; (xxxvi) business reorganisation, dissolution or liquidation of the business; (xxxvii) tax, duty, cess, royalty or fee, by whatever name called, under any law for the time being in force, if the amount is actually paid; (xxxviii) bonus or commission to employees for services rendered if- (a) the amount would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvances computed in the prescribed manner if,- (i) the person is a permitted financial institution; (ii) the amount is charged to the profit and loss account for the financial year in accordance with the prudential norms of the Reserve Bank of India in this regard; and (iii) the amount of trade debt or part thereof written off as irrecoverable in the books of the person is debited to the provision for bad and doubtful debts account; (d) the debit balance, if any, on the last day of the financial year, in the provision for bad and doubtful debts account made under clause (c), if the balance has been transferred to the profit and loss account of the financial year; (e) trade debt or pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party; (g) wealth-tax; and (h) any rate or tax,- (i) levied on the profits of any business ; (ii) assessed at a proportion of , or otherwise on the basis of, the profits of any business; or (iii) paid which is eligible for relief of tax under section 206 or section 258, as the case may be; and (i) any dividend declared or distributed. (5) Any amount of expenditure or deduction referred to in sub-section (1) or subsection (2) or under section 34 or under section 35, which is not allowable by reason of the fact that the expenditure is in violation of the condition, if any, or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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