Any expenditure not covered by section 30 to 36 is deductible under section 37, subject to the following conditions
- It should not be a capital expenditure
- It should not be personal expenses of the assesse
- It should be incurred wholly and exclusively for the purpose of business or profession
- It should not be incurred for a purpose which is an offence or which is prohibited by law
Expenditure incurred by an assessee on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party is not allowed as deduction. [Section 37(2B)]
Any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purposes of the business or profession. [Explanation 1 to Section 37(1) ]
