Section 14A of the Income Tax Act is one of the most abused law of land . The abuse of the law is more from revenue side than assessee. In fact, the Tax Simplification Committee constituted by the government mentioned in its report
"There has been a spate of litigation on the application of the section. The Committee is informed that around 15% of the tax litigation is attributed to the determination of expenditure relating to exempt income. The Committee therefore felt that there is an urgent need to clarify and simplify some of the provisions of the section and the rule."
Sri Arun Jately, Hon'ble Finance Minister included in his Budget Speech his commitment to change the Rule 8D by saying as under :
Activate Annual Subscription
To view this post please login and activate subscription.