Section 14A & Rule 8D - Expenditure in relation to income not includible in total income

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..... me-tax Act, 1961, that no deduction shall be made in respect of any expenditure incurred by the assessee in relation to income which does not form part of the total income under the Income-tax Act. This amendment takes effect retrospectively from 1st April, 1962 and accordingly, applies in relation to the assessment year 1962-63 and subsequent assessment years Section 14A read with Rule 8D No dedu .....

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..... le to any particular income or receipt, an amount computed in accordance with the following formula, namely: A x B/C Where, A = amount of expenditure by way of interest other than the amount of interest included in (i) incurred during the previous year B = the average of value of investment, income from which is exempt under section 10, as appearing in the balance sheet of the assessee, on the fir .....

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..... hapter VI-A . [ Commissioner Of Income-Tax Versus Kribhco 2012 (7) TMI 591 - Delhi HC ] Disallowance of expenditure under section 14A read with Rule 8D shall be made even if assessee has not earned any tax exempt income during the previous year. Clarification regarding disallowance of expenses under section 14A of the Income-tax Act in cases where corresponding exempt income has not been earned du .....

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