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Questions › Category: CA-Final Tax Audit › How to learn huge clause no. 21 in detail
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Urvashi jainurvashi jain asked 6 years ago

Sir please give the trick for learning clause 21 which is huge. How do I learn it?

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RaviRavi Staff answered 6 years ago

I have highlighted key points in each sub clause , arranging them in logical sequence
First 4 points —-In the sequence of “biggest expenditure first”

  1. Capital Expenditure / Interest on Loan for CAPEX
  2. Advertisement Expenditure in documents of political party
  3. Partner’s Remuneration Sec 40(b) / (ba)
  4. Employee Related — Payment to Unregistered Gratuity, PF / Provision for Gratuity

Next 5 —- improper behaviour by business men

  1. Personal Expenditure
  2. Expenditure on exempted income
  3. Cash Expenditure exceeding 20,000 / 35,000 40A(3)
  4. TDS not deducted 409(a)
  5. Provision for contingent liability