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    Question

    Under Indian Income Tax, which expense is not allowed as

    deduction while computing income under “Profits and Gains of Business or Profession”?
    A Depreciation on business assets Correct Answer Incorrect Answer
    B Interest on capital to partners within limits Correct Answer Incorrect Answer
    C Donations to political parties Correct Answer Incorrect Answer
    D Salary to employees Correct Answer Incorrect Answer
    E Rent paid for office Correct Answer Incorrect Answer

    Solution

    Political donations are not deductible under business income; they qualify under Section 80GGC for individuals. All other options are allowable business expenses under PGBP.

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