What expenses are tax deductible, and what are not?

You can claim deduction for expenses that are wholly and exclusively incurred from the production of income.

To qualify for tax deduction, the expenses must:

  • Be revenue-focused in nature. This covers normal day-to-day expenses, but excludes capital expenditure.
  • Not be prohibited under the Income Tax Act.
  • Have actually been incurred. Contingent liability is not allowed for tax deduction.
Posted in Taxation Left.