Deductibility of foreign tour expenses: knowledge gaining business tours deductible, trips creating assets not deductible; comply with prescribed limits.

Admissibility of foreign tour expenses for directors, partners, proprietors or employees depends on whether the tour creates a capital asset or is revenue in nature; trips to acquire machinery or establish new undertakings are capital and not deductible, whereas tours to study industry developments or attend conferences yield knowledge enhancing business profitability and may be allowed as revenue deductions, subject to applicable prescribed limits on travel expenditure.

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