Disallowance of Expenses

Description

The content broadly covers the law relating to:
• General principles for allowability of business expenditure
• Capital vs. revenue expenditure
• Personal and non-business expenses
• Disallowance for payments not wholly and exclusively incurred for business
• Expenditure prohibited by law or opposed to public policy
• Disallowance under specific statutory provisions
• Cash payment restrictions and related disallowances
• TDS-related disallowances for non-deduction or non-payment of tax
• Employee welfare and statutory dues-related disallowances
• Related-party payments and excessive or unreasonable expenditure
• Expenses relating to exempt income
• Depreciation-linked restrictions and inadmissible claims
• Key compliance implications under the amended provisions of the Finance Act, 2026