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.

[Jyoti Sahoo]

Dear all,

Kindly advise me on above issue.

AI Summary

Staff welfare expenditure queried for tax deductibility when used for constructing employee club at a site office.
Whether payments made to employees as staff welfare for construction of a club at a site office qualify as allowable business expenditure under the Income Tax Act, and whether such welfare-related construction costs are fully or partially deductible or fall within disallowance provisions.