Rule 8D: Method for determining amount of expenditure in relation to income not includible in total income

The Income-tax Rules, 1962Central Act · 1962

Method for determining amount of expenditure in relation to income not includible in total income.

(1) Where the Assessing Officer, having regard to the accounts of the assessee of a previous year, is not satisfied with—

(a) the correctness of the claim of expenditure made by the assessee; or

(b) the claim made by the assessee that no expenditure has been incurred,

in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub-rule (2).

[(2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:—

(i) the amount of expenditure directly relating to income which does not form part of total income; and

(ii) an amount equal to one per cent of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not or shall not form part of total income:

Provided that the amount referred to in clause (i) and clause (ii) shall not exceed the total expenditure claimed by the assessee.]

(3) [***]]

Where this provision sits

Act	The Income-tax Rules, 1962
Rule	8D
Marginal note	Method for determining amount of expenditure in relation to income not includible in total income
Jurisdiction	Central
Status	In force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

substituted. Substituted by the IT (Fourteenth Amdt.) Rules, 2016, w.e.f. 2-6-2016.
omitted. Omitted by the IT (Fourteenth Amdt.) Rules, 2016, w.e.f. 2-6-2016.

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