TaxTMI 
TaxTMI 
Dear Friends,My client is lawyer deling in Registration & Documentaion of the real estate transactions for various campanies.In this connections he left with no option but to pay ( Tips !! & others!!)to the Govt Officials.How to account in the books of accounts.Is it Admissible under the Income Tax Act.Kindly Clarify
Accounting treatment in income tax
27 Jul 2009 
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Payments to public officials are illegal and generally non-deductible; evidentiary proof may be needed to treat them as business loss.
Payments to government officials described as tips, speed money, gifts or bribes are illegal and generally not allowable as deductions for income tax purposes. If payments were made under demonstrable compulsion, contemporaneous evidence of demand and payment may be offered to contend the outlay was a loss incidental to business or profession, but public policy and the unlawful nature of such payments make allowability legally precarious and fact-sensitive. (AI Summary)
Payments to government officials described as tips, speed money, gifts or bribes are illegal and generally not allowable as deductions for income tax purposes. If payments were made under demonstrable compulsion, contemporaneous evidence of demand and payment may be offered to contend the outlay was a loss incidental to business or profession, but public policy and the unlawful nature of such payments make allowability legally precarious and fact-sensitive. (AI Summary)