TaxTMI 
TaxTMI 
Other deductions
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....t, 1972 (57 of 1972) and approved by the Central Government; or (B) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);] (ii) any sum paid to an employee as bonus or commission for services rendered, where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission; ^4[****] (ii) ^5[****] (iia) ^6[****] (iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession : ^7[Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset ^72[****] (whether capitalised in the books of account or not); for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which such asset was first put to use, shall not be allowed as deduction.] Explanation.-Recurring subscriptions paid periodically by shareholders, or subscribers in Mutual Benefit Societies which ....
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....redited by the assessee to the employee's account in the relevant fund or funds on or before the due date. ^79[Explanation 1].-For the purposes of this clause, "due date" means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise;] ^80[Explanation 2.- For the removal of doubts, it is hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the "due date" under this clause;] (vi) in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses or animals; (vii) subject to the provisions of sub-section (2), the amount of ^11[any bad debt or part thereof which is written off as irre....
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....ch bank computed in the prescribed manner : ^21[Provided that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed in any of the relevant assessment years, deduction in respect of any provision made by it for any assets classified by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued by it in this behalf, for an amount not exceeding five per cent of the amount of such assets shown in the books of account of the bank on the last day of the previous year:] ^22[Provided further that for the relevant assessment years commencing on or after the 1st day of April, 2003 and ending before the 1st day of April, 2005, the provisions of the first proviso shall have effect as if for the words "five per cent", the words "ten per cent" had been substituted :] ^23[Provided also that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed a further deduction in excess of the limits specified in the foregoing provisions, for an amount not exceeding the income derived from redemption of securities in accordance with a sc....
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....re the first day of the previous year; ^30[(ii) "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) ^31[***];] ^32[(iii) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (iv) "State financial corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951); (v) "State industrial investment corporation" means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of provid....
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....ity referred to in sub-clause (vi) of clause (a), the business of providing long-term finance for development of infrastructure facility in India; (c) "banking company" means a company to which the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act; (d) "co-operative bank", "primary agricultural credit society" and "primary co-operative agricultural and rural development bank" shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P; (e) "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes; (f) "public company" shall have the meaning assigned to it in section 3 of the Companies Act, 1956(1 of 1956) ; (g) "infrastructure facility" means- (i) an infrastructure facility as defined in the Explanation to clause (i) of sub-section (4) of section 80-IA, or any other public facility of a similar nature as may be notified by the Boa....
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....the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this clause. Explanation.-For the purposes of this clause,- (a) "computer system" means a device or collection of devices including input and output support devices and excluding calculators which are not programmable and capable of being used in conjunction with external files, or more of which contain computer programmes, electronic instructions, input data and output data, that performs functions including, but not limited to, logic, arithmetic, data storage and retrieval, communication and control; (b) "Y2K compliant computer system" means a computer system capable of correctly processing, providing or receiving data relating to date within and between the twentieth and twenty-first century;] ^54[(xii) any expenditure (not being in the nature of capital expenditure) incurred by a corporation or a body corporate, by whatever name called, if,- (a) it is constituted or established by a Central, State or Provincial Act....
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....gned to them under Chapter VII of the Finance Act, 2013.] ^74[(xvii) the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar for purchase of sugarcane at a price which is equal to or less than the price fixed or approved by the Government.] ^78[(xviii) marked to market loss or other expected loss as computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145.] (2) In making any deduction for a bad debt or part thereof, the following provisions shall apply- ^56[(i) no such deduction shall be allowed unless such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year, or represents money lent in the ordinary course of the business of banking or money-lending which is carried on by the assessee;] (ii) if the amount ultimately recovered on any such debt or part of debt is less than the difference between the debt or part and the amount so deducted, the deficiency shall be deductible in th....
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....s, "Provided that the deduction in respect of bonus paid to an employee employed in a factory or other establishment to which the provisions of the Payment of Bonus Act, 1965 (21 of 1965) apply shall not exceed the amount of bonus payable under that Act." Earlier, Inserted vide Section 29 of the Payment of Bonus (Amendment) Act, 1976 w.e.f. 25-09-1975 5 Omitted vide Section 11 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "(ii) any sum paid to an employee as bonus or commission for services rendered, where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission: Provided further that the amount of the bonus (not being bonus referred to in the first proviso) or commission is reasonable with reference to- (a) the pay of the employee and the conditions of his service; (b) the profits of the business or profession for the previous year in question; and (c) the general practice in similar business or profession;" Earlier, Amended vide Section 29 of the Payment of Bonus (Amendment) Act, 1976 w.e....
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....ital company" and "infrastructure capital fund" shall have the same meanings respectively assigned to them in clauses (a) and (b) of Explanation 1 to clause (23G) of section 10;" 10. Inserted vide Section 9 of the Finance Act, 1987 w.e.f. 01-04-1988 11. Substituted vide Section 11 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "any debt, or part thereof, which is established to have become a bad debt in the previous year" 12. Inserted vide Section 10 of the Finance Act, 1985 w.e.f. 01-04-1985 13. Substituted vide Section 7 of the Finance Act, 1997 w.e.f. 01-04-1992 before it was read as, "a bank" 14. Inserted vide Section 25 of the Finance Act, 2001 w.e.f. 01-04-1989 15. Inserted vide Section 6 of the Finance Act, 1979 w.e.f. 01-04-1980 16. Substituted vide Section 2 of the Income-tax (Amendment) Act, 1986 w.e.f. 01-04-1987 before it was read as, "(viia) in respect of any provision for bad and doubtful debts made by a scheduled bank [not being a bank approved by the Central Government for the purposes of clause (viiia) or a bank incorp....
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....w.e.f. 01-04-2003 27. Inserted vide Section 10 of the Finance Act, 1982 w.e.f. 01-04-1983 28. Re-lettered vide Section 10 of the Finance Act, 1982 w.e.f. 01-04-1983 before it was read as, "(i)" 29. Inserted vide Section 10 of the Finance Act, 1982 w.e.f. 01-04-1983 30. Substituted vide Section 11 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "(ii) "scheduled bank" has the same meaning as in the Explanation to clause (iii) of sub-section (5) of section 11, but does not include a co-operative bank ;" Earlier, Amended vide Section 10 of the Finance Act, 1985 w.e.f. 01-04-1985 31. Omitted vide Section 13 of the Finance Act, 2007 w.e.f. 01-04-2007 before it was read as, ", but does not include a co-operative bank" 32. Inserted vide Section 14 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1992 33. Substituted vide Section 18 of the Finance Act, 2000 w.e.f. 01-04-2000 before it was read as, "approved by the Central Government under clause (viii) of this sub-section" 34. Inserted vide Section 13 of the F....
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....Finance Act, 1979 w.e.f. 01-04-1980 40. Omitted vide Section 22 of the Finance Act, 1999 w.e.f. 01-04-2000 before it was read as, "further" 41. Inserted vide Section 7 of the Finance Act, 1981 w.e.f. 01-04-1982 42. Substituted vide Section 14 of the Finance (No. 2) Act, 1996 w.e.f. 01-04-1997 before it was read as, "(excluding the amounts capitalised from reserves)" 43. Inserted vide Section 6 of the Finance Act, 1979 w.e.f. 01-04-1980 44. Substituted vide Section 14 of the Finance Act, 1992 w.e.f. 01-04-1987 before it was read as, "Explanation. In this clause,- (a) "financial corporation" shall include a public company; (b) "public company" shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956)." Earlier, Inserted vide Section 9 of the Finance Act, 1970 w.e.f. 01-04-1966 And was Omitted vide Section 5 of the Finance Act, 1974 w.e.f. 01-04-1975 "Explanation : For the removal of doubts, it is hereby declared that in the case of a financial corporation to which sub-clause (a) applies, if the amount....
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....k is, for the time being, approved by the Central Government for the purposes of this clause. Explanation.-For the purposes of this clause, "scheduled bank" has the same meaning as in clause (ii) of the Explanation to clause (viia);" Earlier, Inserted vide Section 10 of the Finance Act, 1982 w.e.f. 01-04-1983 And was Amended vide Section 10 of the Finance Act, 1985 w.e.f. 01-04-1985 48. Inserted vide Section 11 of the Finance Act, 1965 w.e.f. 01-04-1965 49. Inserted vide Section 15 of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1967 50. Inserted vide Section 8 of the Finance Act, 1989 w.e.f. 01-04-1989 51. Substituted vide Section 18 of the Finance Act, 2003 w.e.f. 01-04-2003 before it was read as, "any fund specified under clause (23E) of section 10" 52. Omitted vide Section 13 of the Finance Act, 2007 w.e.f. 01-04-2008 before it was read as, "(x) any sum paid by a public financial institution by way of contribution towards^ 51[any Exchange Risk Administration Fund set up by public financial institutions, either jointly or separately] Explanation.-For the purpo....
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....r, Inserted vide Section 10 of the Finance Act, 1985 w.e.f. 01-04-1985 62. Inserted vide Section 9 of the Finance Act, 2008 w.e.f. 01-04-2009 63. Omitted vide Section 14 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2009 before it was read as, "(xvi) an amount equal to the commodities transaction tax paid by the assessee in respect of the taxable commodities transactions entered into in the course of his business during the previous year, if the income arising from such taxable commodities transactions is included in the income computed under the head "Profits and gains of business or profession". Explanation.-For the purposes of this clause, the expressions "commodities transaction tax" and "taxable commodities transaction" shall have the meanings respectively assigned to them under Chapter VII of the Finance Act, 2008." Earlier, Inserted vide Section 9 of the Finance Act, 2008 w.e.f. 01-04-2009 64. Inserted vide Section 13 of the Finance Act, 2007 w.e.f. 01-04-2008 65. Substituted vide Section 13 of the Finance Act, 2007 w.e.f. 01-04-2008 before it was read as, "(viii) ^35[in respect of any special res....