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

Sushubh

Administrator
[OP]
Oct 29, 2004
419,965
13,084
Gurugram
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

Star gazer
Regulars
Jul 3, 2006
24,749
1,078
Mumbai
I think thats right, if government cant protect his kids, he better not be paying tax!
 


Sushubh

Administrator
[OP]
Oct 29, 2004
419,965
13,084
Gurugram
too bad this loophole cannot be used to save on tax. because the money would be converted from white to black. :(
 

amish

Star gazer
Regulars
Jul 3, 2006
24,749
1,078
Mumbai
Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.
 

Sushubh

Administrator
[OP]
Oct 29, 2004
419,965
13,084
Gurugram
well you would only claim tax rebate if you paid through your bank account :confused:
 


anant.del

Addicts
Regulars
Jan 2, 2010
8,182
396
Well no, if u claim u paid ransom.. u got to prove from where u got that money as well.

haha right :D
 

amish

Star gazer
Regulars
Jul 3, 2006
24,749
1,078
Mumbai
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.

----------

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

Addicts
Regulars
Jan 2, 2010
8,182
396
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

Addicts
Regulars
Jun 17, 2011
7,371
433
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.