Such expenditure may be in form of advertisement, in
souvenir,brochure,tract,pamphlet etc
of political party
Even if they are for the purpose of business,still no deduction allowed under Section 37
Even Monetary Donation directly to political parties not allowed
(Donation to political party is allowed under chapter VI A (which we will do later)
| Particulars | Amt | Advertisement in Pamphlet etc | Donation to Political Party |
| Income from Salaries | xx | ||
| Income from House Property | xx | ||
| Profits and Gains of Business and Profession | xx | <---Disallowed here | <----Disallowed here |
| Income from Capital Gains | xx | ||
| Income from Other Sources | xx | ||
| Gross Total Income | xx | ||
| Less | |||
| Deductions under Chapter VIA | xx | N/a | <----Allowed here (S ec 80GGB and 80GGC ) |
| Net Total Income | |||
| Tax on Net total Income | xx |
QUESTIONS
Q1
| Proft and Loss of A Ltd | |
| SALES | 500000 |
| Less | |
| EXPENSES | 400000 |
| PROFIT | 100000 |
| Suppose expense include | |
| Donation to AAP | 30000 |
| Advertisement in pamphlet of AAP | 10000 |
| 40000 |
| Computation of PGBP Income | |
| Profit as per P& L A/c | 100000 |
| Add | |
| Expense Disallowed | |
| Donation to political party | 30000 |
| Advertisement in pamphlet of AAP | 10000 |
| Expense Allowed | |
| PGBP INCOME | 140000 |
