As per Income Tax Act, 1961, expenditure of the following nature cannot be debited to the Profit & Loss A/c:
Clause 17(a) - expenditure of capital nature
Clause 17 (b) - expenditure of personal nature
Clause 17(c) - expenditure on advertisement in any souvenir, brochure, tract, pamphlet or the like, published by a political party
Clause 17(d) - expenditure incurred at clubs–
as entrance fees and subscription
as cost for club services and facilities use
Clause 17 (e) -
expenditure by way of penalty or fine for violation of any law for the time being in force
any other penalty or fine;
expenditure incurred for any purpose which is an offence or which is prohibited by law
Clause 17 (f) - amounts inadmissible under section 40(a)
Clause 17(g) - interest, salary, bonus, commission or remuneration inadmissible under section 40(b)/40(ba) and computation thereof
Clause 17(i) - provision for payment of gratuity not allowable under section 40A(7)
Clause 17(j) - any sum paid by the assessee as an employer not allowable under section 40A(9)
Clause 17(k) - particulars of any liability of a contingent nature
To view the report for the Amounts debited to P&L a/c Clause 17(a-m),
Go to Gateway of Tally > Audit & Compliance > 44AB Audit > Amounts debited to P&L a/c > Amounts debited to P&L a/c Clause 17(a-m)
Clause 17(a-m) Summary displays the list of expenses incurred with its amount, total number of vouchers, number of vouchers audited and unaudited.
To configure the default display for the Clause 17(a-m) Summary screen,
Click on F12: Configure or press F12 key
Show Group Details: This option should be set to Yes, to view the parent group for the respective ledgers in the Cash Payments screen.
Sorting Method: Select the required sorting method to sort the ledgers Amount-wise (Increasing or Decreasing) or Alphabet-wise (Increasing or Decreasing)
F4: Group
By default, Tally.ERP 9 displays all the ledgers under Primary Group. If the user wants to view the Clause 17(a-m) Summary for a particular Group,
Click on F4: Groups or press F4
Select the required Group and press Enter
To view the Vouchers (Ledger Vouchers) under the each ledger, press Enter on the required Ledger name.
Ctrl+F9: Master Config
To view the ledger name, its group name, the primary group and the applicability of the clause for the specific ledger, press Ctrl+F9: Master Config. For more details, refer Master Configuration.
F: Form 3CD
Click on F: Form 3CD or press Alt+F to fill in Form 3CD for Clause 17. For more details, refer Form 3CD.
C: Clause Reference
For details, refer Clause Reference.