Provisions Relating to Expenditure Disallowance for Non-Taxable Income: comparing Clause 14 of Income Tax Bill, 2025, with Section 14A of Income-tax Act, 1961

Disallowance of expenditure related to non-taxable income clarified and assessing officer powers streamlined under the new income tax bill.

Clause 14 preserves the principle that expenditure related to income not forming part of total income is disallowed, sets out a three-part structure-basic disallowance rule, assessing officer authority to verify or apply a prescribed method, and a tax year temporal application-and streamlines language by incorporating the former Explanation into the main provision while omitting provisions on reassessment, rectification references, and retrospective application.