Tag Archives: Expense on Exempt income

section 14A Expenditure incurred for exempt income

By | July 30, 2015

Question : Whether business loss incurred in the course of purchase and sale of mutual fund units is an expenditure incurred for earning exempt dividend income and, hence, not allowable under section 14A of the Income-tax Act,1961  ? Answer No, Section 14A can not be applied if no proximate cause exists between expenditure and exempt income Where assessee… Read More »