Business Investment Credit against Service Income

I had made a small investment in a company last year. I have had professional services income (paid service tax on it). Can the investment serve as a tax offset against the services income? more

Helpful Tax, Investments and Retirement Jul 25

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ASHISH GOSAIN (Advocate, Patent Agent and Tax Return Preparer)

Hi Faisal, You mean general deduction but won't this be related with deductions under Business Income Alone. Anyways we do not know if this is an infrastructure company do we. What do you feel about Sections 32AB Investment Allowance on capoital expenditure in relation to certain businesses. Thanks, Ashish Gosain. more

Jul 26

FAISAL IQBAL

if investment is eligible u/s 80C of IT , then u get tax rebate more

Jul 26

ASHISH GOSAIN (Advocate, Patent Agent and Tax Return Preparer)

Dear Sir, I write in reply. As you may be aware that Gains and profits from rendition of services is generally included under the gains on the head of Business Income. *The income from the Head "Profits or gains from Business or Profession" is subject to deductions under Sections 30-37, Income Tax Act, 1961. Sections 32A and Sections 32AB relate to Investment Allowance for investment in machinery. **Section 35AD talks of one time deduction for specified business investment i.e. certain sectors. * ** *Please mention nature of activity, time frame of investment and profile of business carried on by the company you invested in to answer your query specifically. * ** In case your situation is different then you may note the following: Shortly, *the answer to your question on investment, (on general tax principles) is if the expenditure is in the nature of investment towards capital expenditure i.e. expenditure incurred in acquiring, building, maintaining capital assets, then it is not allowable, unless specified. ** * ** *Any investment which is revenue expenditure i.e. expenditure incurred from the perspective of generating revenue is deductible e.g advertising. (Based on Delhi high Court Judgments which are not listed here for ease of understanding.) This is also based on accounting principles and concepts behind Income tax laws.* ** *Please let me have your revert on my queries. Also indicate if you want a legal opinion on applied practical aspect/s of the same. You can contact me at 9958190988 at 1:00 P.M tommorrow.* ** ** *Thanks and Regards,* ** *Ashish Gosain.* **Advocate,Supreme Court and Tax Return Preparer. more

Jul 25

Atul Sharma

dear plz explain your question clearly more

Jul 25