From Our Bureau
NEW DELHI: The nominal health and education cess imposed on the income tax payees as an additional surcharge will not be allowed as a business expenditure as ruled by some courts, Finance Minister Nirmala Sitharaman on Tuesday clarified in her budget speech in the Lok Sabha for 2022-23.
Dubbing the court rulings as “against the legislative intent,” she asserted that any surcharge or cess on income and profits is not allowable as business expenditure. She explained that the income-tax is not an allowable expenditure for computation of business income. This includes tax as well as surcharges.
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