TaxTMI 
TaxTMI 
Amounts not deductible
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...., such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.] ^27[Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purposes of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the payee referred to in the said proviso;] Explanation.-For the purposes of this sub-clause,- (A) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (B) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; (ia) ^24[thirty percent. of any sum payable to a resident], on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, ^16[has not been paid on or before the due date specified in sub-se....
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....ic) any sum paid on account of fringe benefit tax under Chapter XII-H;] (ii) any sum paid on account of any rate or tax levied on the profits or gains of any business or profession or assessed at a proportion of, or otherwise on the basis of, any such profits or gains. ^6[Explanation 1.-For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, any sum paid on account of any rate or tax levied includes and shall be deemed always to have included any sum eligible for relief of tax under section 90 or, as the case may be, deduction from the Indian income-tax payable under section 91.] ^7[Explanation 2.-For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, any sum paid on account of any rate or tax levied includes any sum eligible for relief of tax under section 90A;] ^29[Explanation 3.-For the removal of doubts, it is hereby clarified that for the purposes of this sub-clause, the term "tax" shall include and shall be deemed to have always included any surcharge or cess, by whatever name called, on such tax.] ^8[(iia) any sum paid on account of wealth-tax. Explana....
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.... the assessee has made effective arrangements to secure that tax shall be deducted at source from any payments made from the fund which are chargeable to tax under the head "Salaries"; ^10[(v) any tax actually paid by an employer referred to in clause (10CC) of section 10;] ^11[(b) in the case of any firm assessable as such,- (i) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as "remuneration") to any partner who is not a working partner; or (ii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is not authorised by, or is not in accordance with, the terms of the partnership deed; or (iii) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is authorised by, and is in accordance with, the terms of the partnership deed, but which relates to any period (falling prior to the date of such partnership deed) for which such payment was not authorised by, or is not in accordance with, any earlier partnership deed, so, however, that the period of....
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.... Explanation 3.-For the purposes of this clause, "book-profit" means the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit. Explanation 4.-For the purposes of this clause, "working partner" means an individual who is actively engaged in conducting the affairs of the business or profession of the firm of which he is a partner;] ^13[(ba) in the case of an association of persons or body of individuals [other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India], any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such association or body to a member of such association or body. Explanation 1.-Where interest is paid by an association or body to any member thereof who has also paid interest to the association or body, the am....
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.... Provided that where in respect of any such sum, tax has been deducted under Chapter XVII-B or paid in any subsequent year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. Explanation.-For the purposes of this sub-clause,- (A) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (B) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;' Earlier, Substituted vide Section 11 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, "(i) any interest chargeable under this Act which is payable outside India (not being interest on a loan issued for public subscription before the 1st day of April, 1938), on which tax has not been paid or deducted under Chapter XVII-B and in respect of which there is no person in India who may be treated as an agent under section 163;" And was Substituted vide Section 19 of the Finance Act, 2003 w.e.f. 01-04-2004 before it was read as, "(i) any interest (not being interest on a loan i....
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....in respect of any obligation which but for such payment would have been payable by such employee) or any expenditure or allowance in respect of any assets of the assessee used by such employee either wholly or partly for his own purposes or benefit, to the extent such expenditure or allowance exceeds one-fifth of the amount of salary payable to the employee, or an amount calculated at the rate of one thousand rupees for each month or part thereof comprised in the period of his employment during the previous year, whichever is less : Provided that in computing the aforesaid expenditure or allowance, the following shall not be taken into account, namely :- (a) any payment by way of gratuity; (b) the value of any travel concession or assistance referred to in clause (5) of section 10; (c) passage moneys or the value of any free or concessional passage referred to in sub-clause (i) of clause (6) of section 10; (d) any payment of tax referred to in sub-clause (vii) or sub-clause (viia) of clause (6) of section 10; (e) any sum referred to in sub-clause (vii) of clause (1) of section 17; (f) any sum referred to in sub-clause (....
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....;count for the purposes of this clause. Explanation 3 : Where an individual is a partner in a firm other­wise than as partner in a representative capacity, interest paid by the firm to such individual shall not be taken into account for the purposes of this clause, if such interest is received by him on behalf, or for the benefit, of any other person;" Earlier, Amended vide Section 10 of the Taxation Laws (Amendment) Act, 1984 w.e.f. 01-04-1985 And was Amended vide Section 13 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 12. Substituted vide Section 20 of the Finance Act, 2002 w.e.f. 01-06-2002 before it was read as, "eighteen" 13. Inserted vide Section 9 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 14. Omitted vide Section 13 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "(c) in the case of any company- (i) any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to a director or to a person who has a substantial interest in t....
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.... a banking company, the amounts which have been allowed as a deduction in computing its income chargeable to income-tax under the head "Interest on securities" under the provisions of sub-section (I) of section 20." 16. Substituted vide Section 12 of the Finance Act, 2010 w.e.f. 01-04-2010 before it was read as, "has not been paid,- (A) in a case where the tax was deductible and was so deducted during the last month of the previous year, on or before the due date specified in sub-section (1) of section 139; or (B) in any other case, on or before the last day of the previous year;" Earlier, Substituted vide Section 10 of the Finance Act, 2008 w.e.f. 01-04-2005 before it was read as, "has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200". 17. Substituted vide Section 12 of the Finance Act, 2010 w.e.f. 01-04-2010 before it was read as, "Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted- (A) during the last month of the previous year ....