Income From Business Chapter- 09
or any other crossed banking instrument showing transfer of amount from the business bank
account of the taxpayer:
The online transfer and payments through credit cards shall be treated as through banking
channel if the same are verifiable from the business account of the payer to the business
account of payee:
Provided further that this clause shall not apply in the case of-
Expenditures not exceeding Rs. 25 ,000; expenditures of utility bills, freight charges, travel fare, postage and payment of taxes,
duties, fee, fines or any other statutory obligation;
Provided further also that this clause shall not apply to a company from the date clause (la) has
been made effective through the notification issued by the board;
(la) any expenditure by a taxpayer being a company for a transaction, paid or payable under a
single account head which, in aggregate, exceeds Rs. 250,000, made other than by digital
means from business bank account of the taxpayer notified to the Commissioner under section
114A:
Provided that this clause shall not apply in the case of –
(a) Expenditure not exceeding Rs. 25,000
(b) expenditures on account of -
(i) utility bills;
(ii) freight charges;
(iii) travel fare;
(iv) postage; and
(v) payment of taxes, duties, fee, fines or any other statutory obligation:
Provided further that this clause shall be effective from such date as the Board may notify.
m) any salary paid or payable exceeding Rs.25,000 per month other than by a crossed cheque
or direct transfer of funds to the employee's bank account or through digital means;
(o) any expenditure in respect of sales promotion, advertisement and publicity in excess of 10 % of
turnover incurred by pharmaceutical manufacturers.
(p) any expenditure on account of utility bill in excess of such limits and in violation of such
conditions as may be prescribed; and
(q) any expenditure attributable to sales made to persons required to be registered but not
registered under the Sales Tax Act, 1990 by an industrial undertaking computed according to
the following formula, namely:—
(A/B) x C
where—
A is the total amount of deductions claimed under this Part;
B is the turnover for the tax year; and
C is the total amount of sales exclusive of sales tax and federal excise duty to persons required
to be registered but not registered under the Sales Tax Act, 1990 where sales equal or exceed
Rs. 100 million per person:
Provided that disallowance of expenditure under this clause shall not exceed 10% of
total deductions claimed under this Part:
Provided further that the Board may, by notification in the official Gazette, exempt
persons or classes of persons from this clause on the basis of hardship.”;