Are puja expenses allowable?

The Puja Expenses incurred by an assessee can be allowed as an expenditure, depending on the facts & circumstances of the case as per section 37(1) of the Income Tax Act, 1961 (for short ‘the Act’).

What are disallowed expenses?

Disallowable business expenses are expenses that cannot be deducted against business income. They may be disallowed under the Income Tax Act or because, generally, they are not incurred wholly and exclusively to generate business income.

What are pooja expenses?

Upholds trucking company’s claim that puja for drivers’ safety is ‘business expense’ Think of it as an answered prayer. The Income Tax Appellate Tribunal (ITAT) has ruled that puja expenses incurred for the smooth functioning of a business can be treated as ‘business expenses’, which qualify for income tax deduction.

What is allowed and disallowed expenses?

Allowable Expenses include any amount in your turnover that is unpaid and written off. Disallowable Expenses include any debt not included in turnover, debts relating to fixed assets, and general bad debts.

Do Pandits pay tax?

By Sudhir Kaushik of Taxspanner.com With the introduction of standard deduction, these perks are now taxable. Instead, he should ask for reimbursement of telephone expenses and leave travel assistance (LTA). Both these perks are tax free on submission of actual bills. This rejig will save him about Rs 6,500 in tax.

What are staff welfare expenses?

Any expenditure for the benefit of employees apart from their salary is commonly known as staff welfare expenses.

What is 40A disallowance?

( Expenses or Payments not Deductible) Expenses or Payments Not Deductible where such Payments are made to Relatives [Section 40A(2)]: Disallowance of 100% of Expenditure if payment is made by any mode other than Account Payee Cheque or Draft [Section 40A(3)(a)]:

Which expenses are not admissible expenses?

Clothing costs such as uniforms or protective clothing (everyday clothing that you wear to work isn’t an allowable expense) Legal and financial costs such as credit card charges, overdraft fees, insurance policies or hiring the services of accountants, bookkeepers, solicitors or surveyors (you can’t claim legal fines)

Is GST allowed as expense?

Any tax, duty, cess or fee paid under any law in force is allowed as a deduction when it is paid- this includes GST, customs duty or any other taxes or cesses paid. Interest paid on these taxes are also eligible for deduction.

Can we claim input on staff welfare?

Ans: Section 16 (1) of Act provides for eligibility of input tax credit in respect of supply of goods or services in the course or furtherance of business. Hence, receipt of goods or services of these by the employee could be said to be receipt by the Company and ITC on the same should be eligible.

Can we claim GST for staff welfare?

You can claim the GST incurred on fringe benefits if the benefits are incurred for the purpose of your business. In addition, the benefits must not be: A non-claimable item listed under Regulations 26 and 27 of the GST (General) Regulations ; or.

What is 14A disallowance?

Section 14A is a disallowance provision. This section provides that while computing the total income of any assessee, no deduction will be permitted in respect of any expense incurred in relation to any income which is exempt from income tax.

Which is disallowance of pooja expenses-income tax Forum?

Since the Pooja expenses are not allowable as business expenditure, the sum of Rs.2,00,000/- is disallowed and added to the total income of the assessee. As per account maintained in Tally the assessee has debited a sum of Rs.3,00,000/- under the head Pooja expenses.

Which is an allowable expenditure for Pooja temple?

‘Pooja expenses’ in temple located inside factory premises is for business purpose & allowable expenditure. Expenses were incurred on the maintenance and puja of the colony temple at Dalmiapuram, Salem and the Hospet works.

Is the Puja expenses for smooth functioning of business allowable?

The expenses thus it is noted are incurred by the assessee for puja is for the smooth functioning of the business of transport as discussed cannot be disallowed. Since it has been found that the expenses incurred are for the smooth functioning of the business of plying trucks, the expenses need to be allowed.

What was the total amount spent on Puja?

The facts are that the AO after perusal of the financial accounts noted that the assessee had claimed expenditure of Rs. 1,65,308/- towards puja expenses. According to him, the expenses are incurred in cash and since no supporting documents could be produced, he disallowed the entire amount.