Tax deductions can’t be claimed for settling proceedings underneath Sebi, 3 different legal guidelines, ETCFO
The earnings tax division on Thursday mentioned taxpayers won’t be allowed to say deduction for expenditures incurred to settle proceedings initiated underneath 4 legal guidelines, together with the Sebi and the Competitors Act.
In a notification issued on April 23, the Central Board of Direct Taxes (CBDT) notified that any expenditure incurred to settle proceedings initiated in relation to contravention or defaults underneath the 4 specified legal guidelines shall not be deemed to have been incurred for the aim of enterprise or career and no deduction or allowance shall be made in respect of such expenditure.
The 4 legal guidelines are the Securities and Alternate Board of India Act, 1992; the Securities Contracts (Regulation) Act, 1956; the Depositories Act, 1996; And the Competitors Act, 2002.
