Section 44C of ITA, 1961 : Section 44C: Deduction Of Head Office Expenditure In The Case Of Non-Residents

Explanation using Example

Imagine a company based in the United States, ABC International, which operates a subsidiary in India. The Indian subsidiary earns profits from its operations, but also incurs some expenses that are managed by the head office in the US, such as global executive salaries, international travel expenses for executives, and the global head office's rent and insurance.

Under Section 44C of the Income-tax Act, 1961, when ABC International's Indian subsidiary calculates its taxable income in India, it cannot claim a deduction for all of the head of...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.