TaxTMI 
TaxTMI 
TaxTMI 
MBBS Course and entitlement to practice in profession:
After completing MBBS course a doctor is entitled to obtain license/ registration from medical council and start profession of doctor. After completing MBBS he can further pursue higher education of MD or MS or PG diploma in any subject as per his ranking in PG entrance examination and availability of seat.
Compulsory service bonds for pursuing PG courses:
Various state government have imposed condition that after completing Post Graduation Course like MD/ MS or even PG diploma, doctor is required to render service in the state government hospitals for some period which ranges from one year to five years in different states.
In case such service is not rendered, then the PG doctor has to pay to the Government agreed bond amount.
Unless such amount is not paid, original documents relating to education like degree and mark sheets of MBBS and PG, which are held by Government through medical college or other authority are not released.
Contract:
State Government enters into contract with doctor pursuing PG course and imposes conditions for compulsory service within the state and that too in government run/ approved hospitals. The salary offered during bond period is also very low.
Service conditions under bond:
Service conditions while serving bond are generally not very good and in any case does not provide environment and setting and facilities necessary for applying specialized course. This can cause impairment to special skills acquired by doing PG Course.
In case one choose to serve bond, he may not get suitable posting in suitable hospital where he can use his expertise. A PG doctor, if work in general hospital or primary health center, will not be able to use his expertise obtained while pursuing PG course. This is because facilities available in general hospitals are not adequate to use expertise and type of patients who visit general hospitals are of routine diseases and expertise cannot be used. When specialized doctors are required, the general hospitals are required to refer the patients to specialists or super specialty hospitals.
Therefore, it may not be conducive to serve the bond in government hospital and can be harmful in his career and professional development.
In case one want to pursue further studies, then also he need to get release from bond conditions.
These are basic reasons due to which one is required to pay as per conditions of bond so that he can practice in his specialized field and / or purse further education and training.
Payment of bond money and benefit:
On making payment of bond money, doctor is release from compulsory service agreement, and allowed to take his marks sheets, results and degrees. He is then free to pursue further education and / or profession within the state or even out of India.
Better prospects and earning capacity:
On payment of bond money and release from compulsory state government service, prospects of rendering services in more suitable environment, learn and gain from experience and also earn more are improved.
Therefore, many MBBS doctors, after completing PG course choose to pay bond money so as to get more options and opportunities for further education, training and practice.
Is bond money payment allowable?
As discussed above, payment of Bond Money after completing PG course is for the purpose of carrying profession in more meaningful manner and also increase capacity to earn. After doing MBBS, doctor is already in practice but as a general physician and not as a specialist. He has option to serve bond period with state government or can quit it by paying bond money for better prospects. This is to improve his effectiveness, efficiency, and also earning capacity.
If one does not serve bond or after serving bond for some time leave bond service, he is allowed to some time to pay for bond money. During which he can also work as specialist and earn money or make arrangements to pay for bond money.
Therefore, payment of bond money is wholly and exclusively for the purpose of carrying profession, it is not personal expenditure, it is also not capital expenditure. It is as per contract with government and is a contractual payment. It is perfectly legal and within frame work of public policy followed by state government in public interest.
Therefore, payment made by a PG doctor to enable himself relieved from obligations under bond contract so that he can carry profession in more suitable conditions and can also earn more should be considered an allowable expenditure against his professional income.