Expenses Allow and disallow as Deduction as per Income Tax

Expenses allowed as deduction Head as per income tax section

                       Expenses  Allowed As Deduction under B/P


S.R.No
 Section 
  Head         
   1
  Sec30
Rent ,rates,taxes,repairs,& insurance for building
  2
Sec31
Repairs,& insurance for Plant & furniture
  3
Sec32
Depreciation & additional Depreciation
  4
Sec32A
Investment Allowance
  5
Sec33A
Development Allowance
  6
Sec33AB
Tea/Coffee/Rubber development Account
 7
Sec33ABA
Site Restoration fund
 8
Sec33AC
Reserve for Shipping business
 9
Sec35
Expenditure on scientific research
 10
Sec35A
Expenditure on Acquisition of patent rights& copy rights
11
Sec35B
Expenditure on Know –how
12
Sec35ABB
Amortization of Telecom license
13
Sec35AC
Expenditure on eligible projects or scheme
14
Sec35AD
Specified business
15
Sec35CCA
Payment made to association  &Institutions for carrying out rural development program
16
Sec35D
Amortization  of preliminary expenses
17
Sec35DD
Amortization of Expenditure incurred in case of amalgamation or demerger
18
Sec35DDA
Amortization of Expenditure incurred in VRS
19
Sec35E
Amortization of Expenditure incurred on Prospecting for development of certain minerals
20
Sec36(1)(i)
Insurance premium on stocks &stores
21
Sec36(1)(ia)
Insurance premium paid by federal milk co operative society
22
Sec36(1)(ib)
Insurance premium on Health of employees
23
Sec36(1)(ii)
Bonus/commission to employees
24
Sec36(1)(iii)
Interest on Borrowed capital
25
———-
Discount on Zero coupon bonds
26
———-
Emp. contribution to RPF & APF(app. pension fund)
27
Sec36(1)(iva)
Emp. contribution to notified pension Scheme(As mentioned U/Sec 80CCD(w.e.f A.Y 2012-13)
28
Sec36(1)(v)
Emp. contribution to AGF(gratuity)
29
Sec36(1)(vi)
Write off allowance for animals
30
Sec36(1)(vii)
Bad Debts
31
Sec36(1)(viia)
P.B.T relating to rural branch of commercial bank
32
Sec36(1)(viii)
Transfer to Special reserve
33
Sec36(1)(ix)
Family Planning expend
34
Sec36(1)(x)
Contribution towards exchange Risk Admin Fund
35
Sec36(1)(xii)
Expend incurred by entities established under Statutory act
36
Sec36
BCTT (Banking Cash transaction Tax)
37
Sec36
STT (Securities Transaction Tax)
38
Sec36(1)(xii)
Contribution towards credit guarantee  trust fund
39
Sec37  2(B)
Advertisement expenditure
40
Sec37
General deductions
41
———–
Some deductions r allowed for LIC agents if their commission income is Less than 60000 p.a



















































Amounts Disallowed


S.NO
Section
Head
1
Sec40 (a)(ib)
STT
2
—————
FBT
3
Sec40 (a)(ii)
Income tax
4
Sec40 (a)(iia)
Wealth tax
5
Sec40 (a)(iii)
Salary payable outside India with out payment of TDS
6
Sec40 (a)(iv)
p.f payment without TDS
7
Sec40 (a)(v)
Tax on perquisite paid by Employer
8
Sec40 (A)(z)
Payment made to persons specified  U/sec 40(A)(Z)
9
Sec 40 (A)(3)
Payment made in excess of 20,000/- in cash
10
Sec40(A)(7)
Provision for payment of gratuity
11
Sec40(A)(9)
Contribution to non statutory funds
12
Sec43B
Unpaid Statutory liability
Deemed Profits
S.NO
Section
Head
1
Sec41(1)
Recovery against deduction
2
Sec 41(2)
Balancing charge
3
Sec41 (3)
Sale of asset used for scientific reseaech
4
Sec41(4)
Recovery bad debts
5
Sec41 (4A)
Amount withdrawn frm Special reserve
6
Recovery  after discontinuance of business
Other Provisions
S.NO
Section
Head
1
Sec44 AA
Maintenance of accounts
2
Sec 44 AB
Tax  Audit
3
Sec44 AD
Computing of income on  presumptive basis(any business other than below)
4
Sec44 AE
Computing of income on presumptive basis in case of business of plying, leasing or hiring trucks
5
Sec44 AF
Computing of income on presumptive basis in case of retail business

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