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

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u got be kidding me 😀
 
I think thats right, if government cant protect his kids, he better not be paying tax!
 
too bad this loophole cannot be used to save on tax. because the money would be converted from white to black. 🙁
 
Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.
 
well you would only claim tax rebate if you paid through your bank account 😕
 

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

haha right 😀
 
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 😕

nope, u think the kidnappers will let know where the money go??! 😀 it wud all be in cash only.
 
Plus u have get ur kid kidnapped

lol...what kind parents would do such a thing 😛. If they get caught its Jail time for parents and kids both 😀
 
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.
 
nope, u think the kidnappers will let know where the money go??! 😀 it wud all be in cash only.

Admin does not have much experience in kidnapping so u cant blame him for that 😛
 
nope, u think the kidnappers will let know where the money go??! 😀 it wud all be in cash only.

errm. i meant that the money would have to be taken out from the bank account to be claimed for tax rebate. of course it would be paid in cash. but it would have to be taken out from a bank account to show it as a business expense.
 
Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.

withdrawn from bank? 😉

😀
 
Jain, Director of a bidi manufacturing company in Sagar in Madhya Pradesh, was kidnapped by the notorious Raju Bhatnagar gang on August 5, 1987, while on a business trip to purchase tendu leaves. He was released 22 days later after a sum of Rs 5.5 lakh was paid to the kidnappers.In his return filed before IT authorities, Jain showed the amount under "general expenses" and claimed income tax deduction.

also i doubt if the courts would have allowed this if his son had been kidnapped. since he himself was kidnapped, it is somewhat logical that it was a business expense as it was paid for his safety and release... he represents his business of course. i mean it would be somewhat similar to insurance paid by companies for their employees well being?

i doubt he would have had much luck with a ransom paid for a minor.
 
Yes that guy must have withdrawm from bank but what I am saying is that, this method cant be used for converting blake money to white.this guy seems to have legal case.btw it appears that case was by one department of income tax v/s another department of income tax!!one dept said, exempt allowed other said not allowed!!it was not guy v/s income tax.
 

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