Tax Planning Tool

Take your wife abroad on the business trip and save tax on this expense also

The Kerala High Court in one of its turning decisions (Commissioner of Income Tax vs. Aspinwall Co. Ltd., (1999) 9 DTC (Ker HC) 273 ) has allowed the travel expenses incurred by the assessee company on the wife of Chief Executive of its company holding it as the social cost of doing business.

One may still question this decision what benefit the business has earned tangibly or intangibly by incurring the travel expenses of the Co’s Executive officer.Nevertheless , it has provided a good tax planning tool whereby the wives of top bosses of the co. can undertake foreign trips under the garb of the official expenses.