Business & profession

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Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 Please tell me in detail about the Section 37 of the Income Tax Act, 1961.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 March 2014 Section 37 is a GENERAL section which provides deduction in respect of expenditure for business purpose. However, ALL the following conditions need to be fulfilled to claim the deduction:

1. It should NOT be a capital expenditure.
2. It should NOT be a personal expenditure.
3. It should be incurred WHOLLY and EXCLUSIVELY for for business. (Even if it is partly for business and partly for personal it will NOT be allowed as deduction.)