https://www.taxtmi.com/article/detailed?id=1408 Payment of ransom to secure the release and safety of a kidnapped employee or director is undertaken for business protection and commercial expediency. Although kidnapping is an offence, payment of ransom itself is not an offence nor prohibited by law; therefore the Explanation excluding expenditures incurred for an unlawful purpose does not apply, and such payments retain their character as deductible business expenditure under Section 37(1). en-us Tue, 30 Aug 2011 15:18:06 +0530 Tue, 30 Aug 2011 15:18:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1408 Payment of ransom to secure the release and safety of a kidnapped employee or director is undertaken for business protection and commercial expediency. Although kidnapping is an offence, payment of ransom itself is not an offence nor prohibited by law; therefore the Explanation excluding expenditures incurred for an unlawful purpose does not apply, and such payments retain their character as deductible business expenditure under Section 37(1). Articles Income Tax Tue, 30 Aug 2011 15:18:06 +0530 https://www.taxtmi.com/article/detailed?id=1408