CAF-2 · Chapter 7 · Question 15 of 15
ABC Ltd paid Rs. 45,000 as a penalty to the Commissioner for the late filing of its annual return of income. How will this be treated when calculating Income from Business?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) It is an inadmissible deduction.
Explanation
Under Section 21, any fine or penalty paid or payable by the person for the violation of any law, rule, or regulation is strictly an inadmissible deduction.
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