TMI BlogDetermination of operating expenditure.X X X X Extracts X X X X X X X X Extracts X X X X ..... ture 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 paid for any premises if it is occupied and used by the person; (iii) current repairs to buildings if it is occupied and used by the person; (iv) land revenue, local rates or municipal taxes in respect of premises occupied and used by the person is actually paid; (v) current repair of machinery, plant or furniture used by the person; (vi) current maintenance or repairs of computer software or hardware; (vii) salary or wages of employees; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tour or travel; (xx) running or maintenance of motor car or aircraft; (xxi) postage and telecommunications; (xxii) audit and such other professional fees; (xxiii) legal services; (xxiv) entertainment and provision of hospitality; (xxv) maintenance of guest-house; (xxvi) subscription, including entrance fee, to a club or a trade association or the use of their facilities; (xxvii) scientific research and development related to the business; (xxviii) salary to an employee engaged in, or the purchase of material used in, scientific research and development, within a period of three years immediately preceding the commen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (including the payment of gift tax, if any), by the transferor or the donor, if — (a) the person is the transferee or the 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; (xxxiv) protecting or safeguarding the goodwill of person, which has necessarily to be preserved for the purpose of his business; (xxxv) tax (not being a tax under this Code), duty, cess, royalty or fee, by whatever name called, under any law for the time being in force, if the amount is actually paid; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) the repayment of any advance or security deposit in respect of the long-term leasing referred to in clause (xx) of sub-section (2) of section 33, in the year in which such repayment is made; (xliv) any other operating expenditure not covered under clause (i) to clause (xliii). (3) The amount of deductions referred to in clause (b) of sub-section (1) shall be the following, namely:— (a) the value of inventory of the business, as at the beginning of the financial year; (b) loss of inventory, or money, on account of theft, robbery, fraud or embezzlement, occurring in the course of the business, if the inventory, or the money, is written off in the books of account; (c) any amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include the amount of expenditure, being in the nature of, or on account of, — (a) personal expenses of the person; (b) capital expenditure including expenditure in respect of which capital allowance is allowable under section 37; (c) finance charges; (d) any unascertained liability of the person; (e) remuneration payable to any participant other than a working participant; (f) any expenditure incurred by a person on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party; (g) any amount of contribution by an employer during the finanical year to an approved superannuation fund on account of an employee to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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