Tax Column

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Tax Column

Since the entire remuneration is taxable under the head ‘profit & gain on business or profession’, you are entitled to claim actual expenses wholly and exclusively incurred under section 34 of the Finance Act, 2025, corresponding to section 37 of the Income Tax Act, 1961. You can claim vehicle and travelling expenses if they are incurred for travelling for official purposes, including home-to-office travel. You can also claim mobile and internet expenses incurred wholly and exclusively for the business of the LLP, provided such expenses were not reimbursed to you by the LLP. If you own a car, you can also claim depreciation. However, for all these expenses, you must maintain receipts, details and vouchers to support the expenses claimed in case of tax scrutiny.

Since the entire remuneration is taxable under the head ‘profit & gain on business or profession’, you are entitled to claim actual expenses wholly and exclusively incurred under section 34 of the Finance Act, 2025, corresponding to section 37 of the Income Tax Act, 1961. You can claim vehicle and travelling expenses if they are incurred for travelling for official purposes, including home-to-office travel. You can also claim mobile and internet expenses incurred wholly and exclusively for the business of the LLP, provided such expenses were not reimbursed to you by the LLP. If you own a car, you can also claim depreciation. However, for all these expenses, you must maintain receipts, details and vouchers to support the expenses claimed in case of tax scrutiny. 

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