Is there any tax benefit on my divorce case litigation charges? Since 2016 to current date I spend about 1.6 lacks for litigation charges.
T__________DAS (NA) 22 April 2018
Is there any tax benefit on my divorce case litigation charges? Since 2016 to current date I spend about 1.6 lacks for litigation charges.
R.Ramachandran (Advocate) 23 April 2018
No. There will be no deduction of such expenses while calculating income tax liability.
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 23 April 2018
Advocate Friend (Assistant Manager - Legal) 23 April 2018
Dear Rama Chary Sir,
Kind request to quote provision of law as I feel I should also get benefit for litigation expenses.
Thankyou for your time in advance.
R.Ramachandran (Advocate) 24 April 2018
@Mr.Ramachary:
Sir, why dont you indicate the I.T. Act provision under which such deduction is permissible.
R.Ramachandran (Advocate) 25 April 2018
@Mr.Ramachary:
I never expected such a silence from you.
R.Ramachandran (Advocate) 26 April 2018
@Adv.Kamakshi,
I know that he has told "subject to the document proves". But, even if it is subject to production of documents, still I want to know under which provisions of the I.T. Act. such expenses are permitted? Do you know by chance?
R.Ramachandran (Advocate) 27 April 2018
Section 37. (1) of income tax Act, permits any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession".
In this case, how can the expenditure incurred for divorce proceedings can be said to be laid out or expended wholly and exclusively for the purposes of the business or profession? THAT IS THE QUESTION.
Advocate Friend (Assistant Manager - Legal) 28 April 2018
I believe this thread requires input from CA club. Is there any way that a CA be invited???
Further in case of HUF which is recognised as a business entity can the benefit be applied to such HUF.