Tax Law: Expenses According To Special Provisions

In determining allowable expenses to ascertain adjusted business income, adherence to the provisions of Section 33 of the Income Tax Act 1967 (ITA) is paramount. However, clarity in the interpretation of expenses may require reference to legal principles and court decisions. Sections 34, 34A, 34B, 34C, and 34D provide specific deductions to accommodate expenses not covered under Section 33, fostering incentives for businesses and encouraging corporate social responsibility and research and development projects.

Objectives:

1. To elucidate the special provisions outlined in Sections 34, 34A, 34B, 34C, and 34D of the Income Tax Act 1967.
2. To explore the scope and applicability of each specific provision in allowing deductions for business expenses.
3. To understand the significance of these special provisions in promoting business growth, innovation, and corporate social responsibility.

Benefits:

1. Understanding these special provisions aids taxpayers in adhering to tax regulations and maximizing allowable deductions.
2. By providing incentives and deductions, the special provisions stimulate business growth and investment in research and development activities.
3. The provisions encourage businesses to engage in socially responsible activities, such as contributing to approved research institutes, thereby fostering a positive impact on society.