In India, you can claim tax benefit on ransom paid to kidnappers?

Sushubh

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Holding that paying ransom to save a life is not an offence, the Madhya Pradesh High Court has, in a significant judgement, allowed a businessman to claim reduction in his tax liability for ransom he paid for his release from the clutches of kidnappers.

HC allows MP bizman tax benefit for ransom paid to kidnappers, IBN Live News
 

amish

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I think thats right, if government cant protect his kids, he better not be paying tax!
 


Sushubh

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too bad this loophole cannot be used to save on tax. because the money would be converted from white to black. :(
 

amish

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Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.
 

Sushubh

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well you would only claim tax rebate if you paid through your bank account :confused:
 


anant.del

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Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.

haha right :D
 

amish

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Plus u have get to ur kid kidnapped (fake) and file FIR, police complaint. Prove that u actually paid ransom and how.. blah blah. and then there will more inquiry then wat income tax office wud do!

noone wud take this route of converting black money to white.. its too risky.

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well you would only claim tax rebate if you paid through your bank account :confused:

nope, u think the kidnappers will let know where the money go??! :D it wud all be in cash only.
 

anant.del

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Plus u have get ur kid kidnapped

lol...what kind parents would do such a thing :p. If they get caught its Jail time for parents and kids both :D
 

IndianMascot

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Oh Man, What a freaky thing. How will one proove of paying ransom. Are they inspired from the Movie " Phas Gaye re Obama " where kidnappers issued reciept of ransom.
 
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