Efficacy of provisions need to be evaluated to avoid litigation, brain drain and to enforce result orientation in tax laws. - first issue covered S.14A of Income-tax Act, 1961.

Efficacy of provisions need to be evaluated to avoid litigation, brain drain and to enforce result orientation in tax laws. - first issue covered S.14A of Income-tax Act, 1961. https://www.taxtmi.com/article/detailed?id=17100 Section 14A disallows expenditure related to income excluded from total income and permits prescribed computation where the Assessing Officer is dissatisfied with the assessee's accounts-based claim. Rule 8D provides for direct expenditure and a prescribed investment-based amount, subject to a cap of total expenditure claimed. The commentary identifies ambiguity, extensive litigation, and potentially disproportionate compliance costs where exempt income is incidental or economically offset by lower returns or alternative taxation. It proposes evaluating revenue efficacy and either omitting or narrowly confining the disallowance mechanism. en-us Tue, 04 Aug 2026 08:40:44 +0530 Tue, 04 Aug 2026 08:40:44 +0530 TaxTMI RSS Generator Efficacy of provisions need to be evaluated to avoid litigation, brain drain and to enforce result orientation in tax laws. - first issue covered S.14A of Income-tax Act, 1961. https://www.taxtmi.com/article/detailed?id=17100 Section 14A disallows expenditure related to income excluded from total income and permits prescribed computation where the Assessing Officer is dissatisfied with the assessee's accounts-based claim. Rule 8D provides for direct expenditure and a prescribed investment-based amount, subject to a cap of total expenditure claimed. The commentary identifies ambiguity, extensive litigation, and potentially disproportionate compliance costs where exempt income is incidental or economically offset by lower returns or alternative taxation. It proposes evaluating revenue efficacy and either omitting or narrowly confining the disallowance mechanism. Articles Income Tax Tue, 04 Aug 2026 08:40:44 +0530 https://www.taxtmi.com/article/detailed?id=17100