Whether Foreign Tour Expenses of Wife of Director or Managing Director are allowed as deduction? Whether the expenditure incurred by the company on foreign tour of the wife of the Director can be added to the income of wife?

Whether Foreign Tour Expenses of Wife of Director or Managing Director are allowed as deduction? Whether the expenditure incurred by the company on foreign tour of the wife of the Director can be added to the income of wife? https://www.taxtmi.com/news?id=1021 Whether foreign travel expenses borne by a company for a director's wife are deductible or taxable turns on a factual twofold test: existence of a demonstrable business nexus and whether the expenditure confers a gratuitous personal benefit. If a direct business purpose is shown, the expense may be treated as business expenditure; if gratuitous and without obligation, the value is treated as a perquisite assessable in the hands of the spouse. en-us Mon, 12 Oct 2009 14:25:52 +0530 Mon, 12 Oct 2009 14:25:52 +0530 TaxTMI RSS Generator Whether Foreign Tour Expenses of Wife of Director or Managing Director are allowed as deduction? Whether the expenditure incurred by the company on foreign tour of the wife of the Director can be added to the income of wife? https://www.taxtmi.com/news?id=1021 Whether foreign travel expenses borne by a company for a director's wife are deductible or taxable turns on a factual twofold test: existence of a demonstrable business nexus and whether the expenditure confers a gratuitous personal benefit. If a direct business purpose is shown, the expense may be treated as business expenditure; if gratuitous and without obligation, the value is treated as a perquisite assessable in the hands of the spouse. News - Mon, 12 Oct 2009 14:25:52 +0530 https://www.taxtmi.com/news?id=1021