This movement aims to harden compliance and prevention taxpayers to obtain tax relief on expenses related to violations or breaches. The clarification follows the cases of companies that try to discuss these payments as legitimate commercial expenses. | Photo credit:
The Income Tax Department said Thursday that taxpayers will not be able to claim the deduction for the expenses incurred to resolve the procedures initiated under four laws, including the SEBI and the Competition Law.
In a notification problem on April 23, the Central Board of Direct Taxes (CBDT) notified that any expense incurred to resolve the procedures initiated in relation to the infraction or breach low or said expenses.
The four laws are the Law of the Bag and Exchange Board of India, 1992; The Securities Contract Law (Regulation), 1956; The Depository Law, 1996; And the Competition Law, 2002.
Posted on April 24, 2025