Tax deduction

This query is : Resolved 

20 November 2012 sir ,
i have 1 doubt related to income tax deduction.If assessee has incurred an education expenditure , for upgrading the knowledge which will help him in his new project ...what will be nature of that expenditure? capital or revenue? can it be allowed as an expenditure u/s 37?

20 November 2012 It is revenue expenditure and be allowed as deduction in that year.

20 November 2012 k sir thanks ,
can u plz tell me the reasons why it is revenue exp?


21 November 2012 Dear Siddhi,

There is very thin line between judging any expenditure as Revenue / Capital.
Expenditure incurred on education is revenue expenditure, & is allowable expenditure.
But though it will help assessee to enhanced knowledge about new project, he can treat expenses on Books / software / technical fees paid etc. as capital expenditure.
But it is challengeable assessee have to prove value addition to new project.

23 November 2012 k sir thanx



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