James Antony FCA, CISA (Chartered Accountant) (135 Points)
30 November 2010
Hi,
If a doctor practicing as a proprietor of the clinic, goes for a higher study for a specialisation in his field spending 20 lakhs, then, whether the expenditure for his studies including his capitation fee paid, can be deducted u/s 37 ? any cases laws? a detailed reply from the experts is highly appreciated.
Thanks in advance
CA Tarkeshwar
(job)
(77 Points)
Replied 30 November 2010
Respected sir
hi
‘Professional Income’ is income from exercise of any profession or vocation which calls for an intellectual or manual skill. It covers doctor, lawyers, accountants, consulting engineers, artists, musicians, singers etc.
Profits of business or gains from profession are calculated after allowing all legitimate business expenditure. Some important deductions admissible in computing income from business or profession are as follows [sections 30 to 36 of Income Tax Act] —
Any other expenditure which is not of capital nature or personal expenses of the assessee is allowed if it is expended wholly and exclusively for the purposes of business or profession
The expense on such studies is exclusively related to profession hence not personal expenditure but may be of capital expenditure and deduction under section 37 can be denied
Alternatively
It should be capitalized and depreciation can be claimed as intangible assets
Following are certain definition of Know how. I think cost of higher study for a specialisation in his field is comes under the preview of the definition of know-how and accordingly depreciation under section 32 is available to the assessee @ 25% pa
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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