Special deduction for member-based deficiency in trade and professional associations under income tax rules, subject to ceiling and set-off limits. Special deduction applies to a specified association, meaning a trade, professional or similar association whose income is not distributed to members. Receipts from members include subscriptions or similar contributions, but not remuneration for specific services, and expenditure excludes capital expenditure and expenses otherwise deductible under the Act. Any deficiency between member receipts and qualifying expenditure is deductible first against income under the head Profits and gains of business or profession and then against other income, subject to a 50% ceiling and prior adjustment of brought forward losses and unabsorbed allowances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Special deduction for member-based deficiency in trade and professional associations under income tax rules, subject to ceiling and set-off limits.
Special deduction applies to a specified association, meaning a trade, professional or similar association whose income is not distributed to members. Receipts from members include subscriptions or similar contributions, but not remuneration for specific services, and expenditure excludes capital expenditure and expenses otherwise deductible under the Act. Any deficiency between member receipts and qualifying expenditure is deductible first against income under the head Profits and gains of business or profession and then against other income, subject to a 50% ceiling and prior adjustment of brought forward losses and unabsorbed allowances.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
