Income Tax Act, 1961
Section 6: Ins. by Act 66 of 1976, s. 10 (w.e.f. 11976).
6. Ins. by Act 66 of 1976, s. 10 (w.e.f. 11976).
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(c) the amount of so much of the expenditure in the nature of head office expenditure incurred by
the assessee as is attributable to the business or profession of the assessee in India,
whichever is the least:
Provided that in a case where the adjusted total income of the assessee is a loss, the amount under
clause (a) shall be computed at the rate of five per cent.of the average adjusted total income of the
assessee.
Explanation.—For the purposes of this section,—
(i) “adjusted total income” means the total income computed in accordance with the provisions
of this Act, without giving effect to the allowance referred to in this section or in sub-section (2) of
section 32or the deduction referred to in section 32Aor section 33or section 33A or the first proviso to
clause (ix) of sub-section (1) of section 36 or any loss carried forward under sub-section (1) of
section 72 or sub-section (2) of section 73 or 2[sub-section (1) or sub-section (3) of section 74] or
sub-section (3) of section 74A or the deductions under Chapter VI-A;
(ii) “average adjusted total income” means,—
(a) in a case where the total income of the assessee is assessable for each of the three
assessment years immediately preceding the relevant assessment year, one-third of the aggregate
amount of the adjusted total income in respect of the previous years relevant to the aforesaid three
assessment years;
(b) in a case where the total income of the assessee is assessable only for two of the aforesaid
three assessment years, one-half of the aggregate amount of the adjusted total income in respect
of the previous years relevant to the aforesaid two assessment years;
(c) in a case where the total income of the assessee is assessable only for one of the aforesaid
three assessment years, the amount of the adjusted total income in respect of the previous year
relevant to that assessment year;
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(iv) “head office expenditure” means executive and general administration expenditure incurred
by the assessee outside India, including expenditure incurred in respect of—
(a) rent, rates, taxes, repairs or insurance of any premises outside India used for the purposes
of the business or profession;
(b) salary, wages, annuity, pension, fees, bonus, commission, gratuity, perquisites or profits
in lieu of or in addition to salary, whether paid or allowed to any employee or other person
employed in, or managing the affairs of, any office outside India;
(c) travelling by any employee or other person employed in, or managing the affairs of, any
office outside India; and
(d) such other matters connected with executive and general administration as may be
prescribed.]
the amount of so much of the expenditure in the nature of head office expenditure incurred by
the assessee as is attributable to the business or profession of the assessee in India,
whichever is the least:
Provided that in a case where the adjusted total income of the assessee is a loss, the amount under
clause
shall be computed at the rate of five per cent.of the average adjusted total income of the
assessee.
Explanation.—For the purposes of this section,—
“adjusted total income” means the total income computed in accordance with the provisions
of this Act, without giving effect to the allowance referred to in this section or in sub-section
of
section 32or the deduction referred to in section 32Aor section 33or section 33A or the first proviso to
clause
of sub-section
of section 36 or any loss carried forward under sub-section
of
section 72 or sub-section
of section 73 or 2[sub-section
or sub-section
of section 74] or
sub-section
of section 74A or the deductions under Chapter VI-A;
“average adjusted total income” means,—
in a case where the total income of the assessee is assessable for each of the three
assessment years immediately preceding the relevant assessment year, one-third of the aggregate
amount of the adjusted total income in respect of the previous years relevant to the aforesaid three
assessment years;
in a case where the total income of the assessee is assessable only for two of the aforesaid
three assessment years, one-half of the aggregate amount of the adjusted total income in respect
of the previous years relevant to the aforesaid two assessment years;
in a case where the total income of the assessee is assessable only for one of the aforesaid
three assessment years, the amount of the adjusted total income in respect of the previous year
relevant to that assessment year;
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“head office expenditure” means executive and general administration expenditure incurred
by the assessee outside India, including expenditure incurred in respect of—
rent, rates, taxes, repairs or insurance of any premises outside India used for the purposes
of the business or profession;
salary, wages, annuity, pension, fees, bonus, commission, gratuity, perquisites or profits
in lieu of or in addition to salary, whether paid or allowed to any employee or other person
employed in, or managing the affairs of, any office outside India;
travelling by any employee or other person employed in, or managing the affairs of, any
office outside India; and
such other matters connected with executive and general administration as may be
prescribed.]