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 |
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) | |
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 |