https://www.taxtmi.com/article/detailed?id=502 Rule 8D is a mechanism for the Assessing Officer to determine expenditure attributable to exempt income when the AO is dissatisfied with the assessee's claim; it prescribes inclusion of direct expenses, a proportionate share of unallocated interest and a percentage of average exempt investments, but is not mandatory on the assessee or tax auditor. The AO's computation under Rule 8D serves as an upper limit and cannot exceed actual indirect expenses; assessees and auditors should instead allocate direct expenses to exempt income and apportion common expenses on a reasonable basis, reporting inadmissible amounts in Form 3CD. en-us Mon, 21 Sep 2009 00:00:00 +0530 Fri, 25 Sep 2009 14:08:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=502 Rule 8D is a mechanism for the Assessing Officer to determine expenditure attributable to exempt income when the AO is dissatisfied with the assessee's claim; it prescribes inclusion of direct expenses, a proportionate share of unallocated interest and a percentage of average exempt investments, but is not mandatory on the assessee or tax auditor. The AO's computation under Rule 8D serves as an upper limit and cannot exceed actual indirect expenses; assessees and auditors should instead allocate direct expenses to exempt income and apportion common expenses on a reasonable basis, reporting inadmissible amounts in Form 3CD. Articles Income Tax Mon, 21 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=502