Disallowing deduction for settlement amounts paid for contraventions as business expenses to widen tax base & promote anti-avoidance.

Disallowing deduction for settlement amounts paid for contraventions as business expenses to widen tax base & promote anti-avoidance. https://www.taxtmi.com/highlights?id=79868 Proposed amendment to Explanation 3 of Section 37(1) to disallow deduction for expenditure incurred by an assessee to settle proceedings initiated in relation to a contravention under any law, as notified by the Central Government. The amendment aims to widen the tax base and promote anti-avoidance by disallowing settlement amounts paid for contraventions as business expenses. Effective from April 1, 2025, applicable from assessment year 2025-2026 onwards. en-us Sun, 28 Jul 2024 12:50:56 +0530 Sun, 28 Jul 2024 12:50:56 +0530 TaxTMI RSS Generator Disallowing deduction for settlement amounts paid for contraventions as business expenses to widen tax base & promote anti-avoidance. https://www.taxtmi.com/highlights?id=79868 Proposed amendment to Explanation 3 of Section 37(1) to disallow deduction for expenditure incurred by an assessee to settle proceedings initiated in relation to a contravention under any law, as notified by the Central Government. The amendment aims to widen the tax base and promote anti-avoidance by disallowing settlement amounts paid for contraventions as business expenses. Effective from April 1, 2025, applicable from assessment year 2025-2026 onwards. Highlights Bill Sun, 28 Jul 2024 12:50:56 +0530 https://www.taxtmi.com/highlights?id=79868