Dear All,
Whether Fines paid to the Custom is an allowable expenditure under income tax??
2 Replies
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 25 July 2011
HI, all revenue expenses are being allowed in the residuary section 37 of income tax act and these fines and penalties are thus allowable expenses but provided these fines have not been levied for the infringement of law only general penalties are allowable , and in my opinion you should claim the same and if there is any error A.O as per 143 will make the correction if there is any disallowability .
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 25 July 2011
HI, all revenue expenses are being allowed in the residuary section 37 of income tax act and these fines and penalties are thus allowable expenses but provided these fines have not been levied for the infringement of law only general penalties are allowable , and in my opinion you should claim the same and if there is any error A.O as per 143 will make the correction if there is any disallowability .
Recent Topics
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF UNCLAIMED RCM
Related Threads
CAclubindia
