06/02/2019

Advertisement expenditure [Sea 37(2B)] ( Author - Admin )


Advertisement expenditure [Sea 37(2B)] :-

No allowance is available in respect of  expenditure incurred by an assessee on advertisement in any souvenir, brochure, tract, pamphlet or the  like published by a political party. Other remaining expenses on advertisement are deductible according to the provisions given under section 37(1). Disallowance under section 37(2B) and deduction under section 80GGB-Contribution to a political party is deductible under section 80GGB (if a contribution is made by an Indian company) or under section 80GGC if a contribution is made by a person other than an Indian company). Expenditure by way of advertisement to a  magazine owned by a political party is treated as "contribution" to a political party for the purpose of section 80GGB, but not for the purpose of section 80GGC. In other words, advertisement expenditure (in a magazine owned by a political party) is deductible under section 8OGGB if the taxpayer is an Indian company but the same is not deductible under section 8OGGC if the taxpayer is a person other than an Indian company.

About the author

Admin

Print