Staff Welfare

[Jyoti Sahoo]

Dear All,

We are providing some amount to our Employees as staff welfare for construction of club at site office premises,so the same can be allowable expenditure under section 40(a) of IT act 1961....? or part of the amount is allowable....?,please suggest me.

Thanks in advance.

Regards,

CMA Shanmukha.

AI Summary

Can expenses for a site office club be fully deductible under section 40(a) of the Income Tax Act 1961? An inquiry was raised regarding whether expenses for staff welfare, specifically for constructing a club at a site office, are allowable under section 40(a) of the Income Tax Act 1961. The question seeks clarity on whether the entire amount or only a portion is permissible as an expenditure. The discussion includes a request for advice from peers, with one reply asking for further guidance on the issue.