Disallowance of Expenses

This edition of Disallowance of Expenses, authored by Ram Dutt Sharma and published by Commercial Law Publishers (India) Pvt. Ltd., is a focused and practical legal reference based on the provisions of The Income Tax Act, 2025, as amended by The Finance Act, 2026. Designed to meet the needs of tax professionals, legal practitioners, chartered accountants, corporate advisors, and advanced students of taxation law, the book offers a structured and up-to-date treatment of one of the most significant areas of direct tax compliance and litigation—the disallowance of business and professional expenditure.

The book systematically addresses the statutory framework governing the allowability and non-allowability of expenses under the Income Tax Act, helping readers understand which expenditures are deductible and which are liable to be disallowed while computing taxable income. It serves as a valuable resource for interpreting and applying the law in practical tax assessments, return preparation, audits, and dispute resolution.

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

This edition is particularly useful for:
• Chartered accountants and tax consultants handling computation and scrutiny matters
• Advocates and tax litigators dealing with income-tax disputes
• Corporate tax teams and finance professionals ensuring deduction compliance
• Students and academicians studying direct taxation and tax law
• Business owners and professionals seeking clarity on deductible expenditure rules

With its subject-specific focus and alignment with the latest legislative amendments, this 2026 edition provides a dependable and current guide to understanding the legal treatment of expense disallowances under Indian income-tax law. Whether used for professional practice, compliance review, academic study, or litigation support, this volume offers an authoritative and practical reference on a highly consequential area of tax law.