Section 23

Question 0

Section 23(b)

Domestic & private expense

Answer 0

Remember part of house for trade purpose
Specifically equipped
>50% commission (not remuneration)
Work mainly from home

Remember sec 23(m)

Question 1

Section 23 (a)

Private Maintenance

Answer 1

Hickson court case

Question 2

Section 23(c)

Recoverable expense

Answer 2

Can’t deduct an amount which your can recover …

[Sec 8(4)(a) will in any ways recoup the recovery of a deduction…]

Question 3

Section 23(d)

Interest, Penalties & taxes(under this act)

Answer 3

Can’t deduct interest penalties and taxes(under this act)

Input tax denied on entertainment and
Output tax in fringe benefits are not under this act therefor deductible ….

Question 4

Section 23(e)

Provisions & reserves

Answer 4

Contingent liabilities are not incurred s11(a) and prohibited

Exceptions: 11(j) & 24C

Question 5

Section 23(f)

Expenses incurred to produce exempt income

Answer 5

Nemojim ..
MTN
Apportionment

Question 6

Section 23(g)

Non-trade expenditure

Answer 6

Excessive expenditure..(silke 7.8)

Question 7

Section 23(h)

Notional interest

Answer 7

Hypothetical amounts not deductible

Question 8

Section 23(I)

Expenditure, loss or allowance deductible from lump sum benefits

Answer 8

Effectively prohibited double deduction

Question 9

Section 23(k)

Expenditure by certain labour brokers and PSPs

Answer 9

Done later in year ??????????

Question 10

Section 23(l)

Restraint of trade

Answer 10

Except if allowable ito sec 11(cA)

ie: taxed in recipients hands …

Question 11

Section 23(m)

Relating to employment income

Answer 11

Done later in year ??????!????!!?!

Question 12

Section 23(o)

Unlawful activities

Answer 12

Bribes
Penalties for breach of contracts
I.N. 54
Fines

Question 13

Section 23(p)

Cession of insurance policies by employer

Answer 13

Done later in year ????????????

Question 14

Section 23(q)

Expenditure to produce foreign dividends

Answer 14

Because foreign dividends is exempt ?

Question 15

Section 23(r)

Premiums iro insurance policies against:

Answer 15

Illness 
Injury 
Disability 
Unemployment 
Death of that person

Question 16

Section 23 A

Limitation of allowance granted to lessor of certain assets

Answer 16

Basically: Sum of deductions can’t create an assessed loss

Question 17

Section 23 B

Prohibition of double deductions

Answer 17

Unless specifically allowed -sec 12 H (learners ship agreement)

Can’t deduct same amount twice

Question 18

Section 23 C

Reduction of cost or market value of certain assets

Answer 18

Input tax claimed must be excluded from deductions

Claim sec 16(3)(h) of VAT act