The consent rate paid by companies under Sebi Law, the SCRA Law, the Deposit Law and the Competition Law will now not be treated as a commercial expense, said the rental tax department. That means that such expense will not obtain tax exemption.
In accordance with a notification of the Income Tax Department, any expense incurred to resolve processes initiated in relation to the infraction or breach of four laws: Sebi’s Law, the Securities Contract Law (Regulation), the Law of Depositions and the Competition Law and the Demempode Bent -Bone Bep -Bone -ben will not be deducted or carried out in respect to the expenses or such expenses. This notification will enter into force as of April 1, 2025 and will be applied since the year of Evaluation 2025-26 Onrives.
Amit Maheshwari, a fiscal partner of AKM Global, said that the deductibility of liquidation payments under Section 37 (1) of the Income Tax Law, 1961, has long been the subject of judicial debate, participulate in cases such as tax actions on Vtiance Sare Actions and actions of actions and actions of actions and actions of actions and actions of actions and actions of actions and actions of actions and actions of actions and actions of actions. of actions. Sebi was allowed as a commercial expense for reasons of commercial convenience. Now, the notification “effectively annuls the decisions of the prior court and provides very necessary clarity to the fiscal panorama, the Althegh gray areas persist under regulatory laws such as the instructions of FEMA and RBI. Taxpayers are in the league or, therefore, revalate the guide,” he said.
According to Vinita Krishnan, executive director of Khaitan & Co, the provision aims to reject expenses, including the ‘liquidation’ payments incurred due to legal infractions, as specific in the notification listed by the application laws. “This disalowance should Only apply to settlement amount post April 23 (IT, IT Should not impact settlement amounts already paid. Going forward, the deductibility of settlement amounts specally in case or This motion or tos or tos ors LINESS LIGNESS LINESSSSSSSSSSSSSSSSSESS OR THSPIES OR THSPIES LIGNESSESESSESES LINKNESSE LINKNESSSE LINKNESSSES LINKNESSSE LINKNESSSE OR THSPIES LINESSSES LINESS BINNESS BINNESS LINNESS.
Posted on April 24, 2025