General Deductions-Section 37

[Poornima Gupta]

Section 37 - General - Income-tax Act, 1961 

(2B) Notwithstanding anything contained in sub-section (1), no allowance shall be made in respect of expenditure incurred by an assessee on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party.

Q. Why such expenditure is not allowed under IT Act?

AI Summary

Expenditures on Political Party Ads Not Deductible Under Section 37 to Prevent Double Benefits; Deductions via Section 80GGC. A query was raised regarding why expenditures on advertisements in materials published by political parties are not allowed as deductions under Section 37 of the Income-tax Act, 1961. The response suggested that this disallowance might be to prevent double benefits, as deductions for contributions to political parties are already provided under Section 80GGC.