Question

mention any two expressly allowance expenses under business income
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Answer 1

While computing the profit and gains from business or profession, there are certain expenditures which are disallowed. This means that the income tax department does not allow the benefit of such expenditures and the assesses are required to pay taxes on such expenditures by adding it back to the net profits. There are two primary reasons for disallowance of any expenditure:

• The tax amount required to be deducted on certain expenditures are not deducted while making the payment.

• The expenditure does not implicitly relate to the conduct of such business or profession;