Expenditure related to exempt income barred from deduction, thus excluded when computing taxable income under the Act. No deduction is permitted for expenditure incurred in relation to income that is not includible in the taxpayer's total income; expenditures connected with exempt or otherwise non taxable receipts shall be disallowed for the purpose of computing total income under the Act.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Expenditure related to exempt income barred from deduction, thus excluded when computing taxable income under the Act.
No deduction is permitted for expenditure incurred in relation to income that is not includible in the taxpayer's total income; expenditures connected with exempt or otherwise non taxable receipts shall be disallowed for the purpose of computing total income under the Act.
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