Income Tax Act Section 37

Understanding allowability of business expenditure under section 37 of the income tax act 1961 with latest case laws section 37 of the income tax act 1961 is a residuary section for allowability of business expenditure and the same is given below.

Income tax act section 37. Expenditures allowed under section 37 should not be deductible under section 30 to 36. Expenses not deductible under sections 30 to 36 should alone be considered. Section 37 1 of income tax act is a general section which allows deductions to the assessee which are not covered under section 30 to 36.

Section 37 of income tax act 1961 2017 provides special provision for general. Income tax condition for allowance under section 37 such expenditure should not be covered under the specific section i e. It should not be covered under sec.

1961 income tax department all acts income tax act 1961. Exoenditure should be incurred in previous year. Sections 30 to 36.

Section 37 of income tax act 1961 2017 deduction allowed generally for business expenditure chapter iv sections 14 59 of income tax act 1961 deals with provisions related to computation of total income. For a expenditure to be allowable u s 37 1 it shiuld satisfy certain comditions. Apportionment of income between spouses governed by portuguese civil code.

The expenditure should not be of personal nature. The income tax department never asks for your pin numbers. In order to determine whether an expenditure is capital or revenue in nature the fact that it is a lump sum payment or periodic payment is not important.

Expenditure should be of revenue nature. It is quite possible that with regard to some expenses there may be overlapping between sections 30 to 36 and section 37. Section 37 1 expressly prohibits deduction on account of personal expenses.