Section 10(10C) of the Income Tax Act
Income-tax Act, 2025: s.19
Section 10(10C) of the Income-tax Act, 1961 corresponds to section 19 (Deductions from salaries) of the Income-tax Act, 2025.
Read section 19 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 10(10C) is CIT v. Bank of Tokyo Ltd. (71 Taxmann 85), cited in 30 of the 899 judgments on BharatTax that turn on this section.
Leading authorities on Section 10(10C)
The refund of guarantee commission for the unexpired period of a guarantee contract, where the contract is revoked prematurely, is a valid deduction for the assessee-bank.
Statutory liabilities, like customs duty, are deductible only in the year they are actually paid, regardless of the assessee's accounting method, as per Section 43B.
Commission received for providing a guarantee is to be taxed over the period for which the guarantee is provided, not in the year of receipt, especially if the guarantee is cancelled before its expiry.
Engaging in the treatment of bio-medical waste qualifies as maintaining or developing an eligible infrastructural facility under Section 80IA(4) for availing deductions.
Deduction for interest payable under an arbitration award is allowable in the year the liability is incurred, even if disputed or stayed, provided the payee initiates recovery proceedings.
