NEW DELHI: The income tax department on Thursday said taxpayers will not be allowed to claim deduction for expenditures incurred to settle proceedings initiated under four laws.
On April 23, CBDT notified that any expenditure incurred to settle proceedings initiated in relation to contravention or defaults under the four specified laws — Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, and the Competition Act, 2002 — shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance will be allowed for such expenditure.
