Section 37 Income Tax Act

Section 37 of income tax act 1961 2017 provides special provision for general.

Section 37 income tax act. Interest on late deposit of vat service tax tds are allowable business expenditure. 1 any expenditure not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee laid out or expended wholly and exclusively for the purposes. Expenses not deductible under sections 30 to 36 should alone be considered.

For a expenditure to be allowable u s 37 1 it shiuld satisfy certain comditions. It should not be covered under sec. Apportionment of income between spouses governed by portuguese civil code.

Acts of parliament are available without charge and updated monthly at the singapore statutes online website. Income tax act act income tax act subsidiary legislation legislation is reproduced on this website with the permission of the government of singapore. 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.

It is quite possible that with regard to some expenses there may be overlapping between sections 30 to 36 and section 37. Section 37 of the income tax act 1961 is a residuary section for allowability of business expenditure and the same is given below. 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.

Section 37 1 says that any expenditure not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head profits and gains of business or profession. Understanding allowability of business expenditure under section 37 of the income tax act 1961 with latest case laws. Exoenditure should be incurred in previous year.

The income tax appellate tribunal itat delhi bench has held that the closing allowance provided to the employees cannot be disallowed under section 37 1 of the income tax act 1961 if the same is quantifiable. Earned income means the statutory income of an individual reduced by any deduction made under section 37 3 a or 37e or claimed under section 37d excluding any donation referred to in section 37d 8 c or 37f from electronic record has the same meaning as in the electronic transactions act cap. Scope of total income.