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T__________DAS (NA)     22 April 2018

Is there any tax benefit on my divorce case charges?

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.



Learning

 10 Replies

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

Legal expenses can be deducted from your income subject to the documrnt proves.

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.


(Guest)

Every focking lawyer takes money through self cheque, cash or kind. How will you ever prove that you paid fees in the first place? First you need to have proof of making payment. Then you can show it under deductible while computing expenses for purpose of filing income tax returns.

Few years back someone tried to nail advocate income.  They failed utterly.

You can try.  But that will be separate litigation.  Fees paid to advocate is equal to money lost in game of poker, cards. etc

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.


(Guest)

Tum log kaise chutiye ho. Aaj tak tum logon ne paisa leke raseed dia he? Mother fockers you. Advocates never give any bill.  Money paid to waiter as tip can be showed as expense? If yes money paid to adovcate also can be shown as expense.

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.


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