No tax deduction on freebies to doctors: Pharma firm disallowed booking Rs 21 lakh as expense by ITAT
Holding that freebies to medical practitioners are prohibited by law, the Chennai bench of the Income Tax Appellate Tribunal (ITAT) has disallowed expenditure of over Rs 21 lakh incurred by Chennai-based private drug manufacturing company for freebies as deduction in terms of section 37(1) of the Income Tax Act,1961.
According to section 37(1) of the Income Tax Act,1961 (the Act), any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession".
For more details, check out the link given below:
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.