TaxTMI 
TaxTMI 
Deduction for operating expenditure
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....ub-section (3) subject to the fulfillment of the conditions, if any, specified therein. (2) The amount of expenditure referred to in clause (a) of sub-section (1) shall be the amount of expenditure on, or on account of,- (i) purchase of raw material, stores, spares and consumables, or stock-in-trade; (ii) rent actually paid for any premises if it is occupied by the person and used by him; (iii) repairs to buildings if it is occupied and used by the person and the repairs are current in nature; (iv) land revenue, local rates or municipal taxes in respect of premises occupied and us....
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.... members, to the person; (xi) welfare of workmen and staff; (xii) power and fuel; (xiii) freight, clearing and forwarding charge; (xiv) selling expense in the nature of commission, brokerage, discount, or warranty charge; (xv) sales promotion including advertisement and publicity not exceeding the amount charged to profit and loss account; (xvi) training of employees; (xvii) conference; (xviii) use of hotel or boarding and lodging facilities; (xix) conveyance, tour or travel; (xx) repair, running or maintenance of motor car ....
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....xpenditure by a non-resident, as is attributable to his business in India, to the extent of an amount equal to one-half per cent. of the total sales, turnover or gross receipts; (xxxiii) cost of acquisition of the asset as in the case of the predecessor and cost of any improvement made thereto and expenditure incurred wholly and exclusively in connection with the transfer of the asset, by the predecessor, if - (a) the person is the successor in the business reorganisation; (b) the asset becomes the property of the person under a scheme of business reorganisation; and &nbs....
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.... or dividends had it not been paid as bonus or commission; and (b) the amount is actually paid; (xxxix) encashment of leave to the credit of his employees, to the extent the amount is actually paid; and (xl) gratuity to his employees on their retirement or on termination of their employment, to the extent the amount is actually paid; (xli) the objects and purposes of a body corporate, authorised by the Central, State or Provincial Act under which it is constituted or established and notified by the Central Government in the Official Gazette for the purposes of this clause; (xlii) the amount paid b....
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....for bad and doubtful debts account; (d) the debit balance, if any, on the last day of the financial year, in the provision for bad and doubtful debts account made under clause (c), if the balance has been transferred to the profit and loss account of the financial year; (e) trade debt or part thereof, if,- (i) the person is not a permitted financial institution; and (ii) the amount is written off as irrecoverable in the books of the person; (f) payment to a creditor, determined in accordance....
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....ty; (g) wealth-tax; and (h) any rate or tax,- (i) levied on the profits of any business ; (ii) assessed at a proportion of , or otherwise on the basis of, the profits of any business; or (iii) paid which is eligible for relief of tax under section 206 or section 258, as the case may be; and (i) any dividend declared or distributed. (5) Any amount of expenditure or deduction referred to in sub-section (1) or subsection (2) or under section 34 or unde....