Question

Which of the following is not allowed as a deduction for computing profits and gains from business or profession under Section 37 of the Income Tax Act, 1961?

• A. Personal expenses
• B. Capital expenditure
• C. Expenses on Corporate Social Responsibility
• D. All of the above

Answer 1

The Correct Option is D

Section 37 of the Income Tax Act, 1961 disallows personal expenses, capital expenditure, and expenses on Corporate Social Responsibility (CSR) from being deducted while computing profits and gains from business or profession. These expenses are not considered as part of business operations for tax deductions.