| Question And Answer | |
|---|---|
| Subject: | Deduction of education of director |
| Category: | Income-Tax |
| Querist: | Venkat |
| Answered by: | Research Team |
| Tags: | Director, Educational expenses of director |
| Date: | June 19, 2023 |
Sir,
If the company pays expenses for education of the whole time director in a university, is it deductible expense? Also, is tds applicable on the same?
Pl clarify
Depends upon the facts of the case and the agreement with director , how it is beneficial to the interest of the company . In Aswathanarayana & Eswara v. Dy. CIT (2018) 258 Taxman 210 (Mad.)(HC) the court held that if it is related to business the expenditure is allowable as deduction .
In Shreenath Motors Pvt. Ltd. .v. CIT (2014) 365 ITR 536/107 DTR 28/269 CTR 456(Bom.)(HC) the Court held that expenditure on education of director is personal consideration and not commercial consideration hence not allowable. Refer, Kerala Kaumudi Pvt. Ltd. v. CIT (2020) 425 ITR 202 (Ker.)(HC)