Payment of income-tax is not deductible as per section 40(a)(ii); hence, interest under sections 139, 215 and 217 which is to be regarded as accretion to tax, cannot also be allowed to be deducted - Assam Forest Products (P.) Ltd. v. CIT [1989] 180 ITR 478 (Gauhati). Note : On the same principle, interest payable under sections 220(2), 234A, 234B or 234C is also not deductible.
Sales tax and interest for late payment of sales tax is allowed as deduction Any Provisions for sales tax, custom duty, excise, (However, actual payment of sales tax, excise duty or custom duty is allowed as deduction subject to Sec. 43B.)
Penalties for breach of Law is not allowed as deduction
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