Is it a professional expense?
Guest
(Querist) 13 January 2012
This query is : Resolved
Dear Experts
I am an independent consultant.To hone my skills and widen the scope of my consulting, I have joined a diploma course in Human resource management. Can I show it as my professional expenses for the tax purpose? Please advice.
Regards
Sailesh Kumar Shah
(Expert) 13 January 2012
yes, you can show since it is improving for services.
ajay sethi
(Expert) 13 January 2012
agree with shailesh shah
R.Ramachandran
(Expert) 13 January 2012
Suppose I am an M.Com. and a tax practitioner.
Now I undergo C.A. Course, will I be permitted deduction of the expenses incurred for pursuing the C.A. Course?
Or that I am a practising C.A. I want to pursue LL.B. to increase my skills. Will the expenses of pursuing LL.B. be allowed as deduction?
I am afraid, NOT, though I have to locate the case laws on the subject if any, which I will definitely search for.
Sailesh Kumar Shah
(Expert) 13 January 2012
@Shri Ramachandran Sir,
is it not incidental expenses relating to profession?
Deepak Nair
(Expert) 13 January 2012
What is the final outcome?? yes or no??
In my opinion, NO..
Guest
(Querist) 13 January 2012
Well, Mr. Ramchandran is right. I browsed and saw the following :
Expenditure paid for self education not allowable: - This is the only clause u/s 80 C where assessee can not claim tax benefit for expenditure incurred for self. In other words if assessee has paid tuition fees for his own studies, he will not be eligible for deduction.
R.Ramachandran
(Expert) 13 January 2012
Dear Ms. Shreya,
The question is not whether it will be allowed under Section 80C, but whether it will be allowed as business expenses under Section 37.
Raj Kumar Makkad
(Expert) 13 January 2012
There is no such provision under Income Tax Act, 1961.
Guest
(Querist) 13 January 2012
Thank you Mr. Ramchandran. Here I referred to the link below which has a number of case laws. I am not an advocate but studying these case laws I think this expense may be justified as it will improve my business which is in my case consulting.
http://taxguru.in/income-tax/understanding-allowability-business-expenditure-section-37-income-tax-act-1961-latest-case-laws.html
May be I have to justified in what way it would?
Please guide me.
Thanks for arousing the curiosity of a non legal person like me on these matters. it is an interesting reading for me.
V R SHROFF
(Expert) 13 January 2012
I can't reply Tax related Q, but I have Top expert on Taxation, that i have to consult,in need, it is free.
My common sense says, one can get diesel & news paper as expenses, why not books & study mtr.
soumitra basu
(Expert) 17 January 2012
The expenses for self is for personal development and not related to business. There is lot of cases laws where these type of expenses has been held as not allowable. More over section 37 has said exenses other than personal in nature.
