What expenses are deductible for tax against income under Business & Profession?
All the expenses
relating to business and profession are allowed deduction against income.
Following are few examples of expenditures which are allowed:
- Expenditure
incurred during the previous year wholly and exclusively for the purpose of the
business;
- After deducting
allowances and deductions provided in Sections 30 to 43D of the I.T. Act.;
The following expenses are not allowable:-
Expenditure
relating to a discontinued business;
Expenditure
incurred before setting up of a business;
- Provisions,
anticipated losses, reserves or contingent liabilities, bad debts etc. which
have not arisen during the previous year.