Section 37(1) - General clause of Deductions

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..... ot in the nature of personal expenses of the assessee and iii.it is laid out wholly and exclusively for the purposes of the business or profession of the assessee iv. the expenditure should have been incurred during the previous year. EXPLANATION 1 TO SECTION 37(1) : ILLEGAL PAYMENTS Any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not .....

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..... in. The Finance Act, 2022 has inserted the following Explanation 3 to section 37(1) w.e.f. 1-4-2022 EXPLANATION 3 TO SECTION 37(1) For the removal of doubts, it is hereby clarified that the expression expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law under Explanation 1, shall include and shall be deemed to have always included the expenditure in .....

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