By Sherry Samuel Oommen & Ajith R

Background: The question as to the classification of an item of expense as revenue or capital in nature for income-tax purpose has long been a contentious issue before the courts. The same has been settled by the courts on a case-to-case basis, also setting-forth the general principles relevant for determining the deductibility of an expense as revenue expenditure under section 37(1) of the Income-tax Act, 1961 (‘the Act’). The said issue attains greater significance in the case of tax deductibility of payments made towards purchase of software for the purpose of business, considering the fact that said payments would constitute a major item of expenditure not only for major business houses but also for small and medium enterprises (SMEs).

Tvm: GTech, the Group of Technology companies in Kerala, has complimented the State Government for presenting an industry focussed and balanced financial budget. GTech has also welcomed the proposal of the State Government to invest in the infrastructure needs of the IT industry in the cities of Thiruvananthapuram, Kochi and Kozhikode.

New Delhi: Innovators, its time to register for participating in the FICCI DST-Lockheed Martin India Innovation Growth Programme 2012. The Programme is a nation-wide project, created to enhance the growth and development of India's entrepreneurial economy. The project has been running successfully since 2007 and approximately 200 agreements have been signed between innovators and industry partners, helping innovators enter into the commercial space. The cumulative revenue generated by the 2007-09 participants during 2007-10 amounted to more than Rs.350 crores.

By Korath V Mathew

The Unique Identification project, named ‘Aadhaar’, initiated by the Prime Minister under the chairmanship of renowned Nandan Nilekani has caught the imagination of the nation like never before. While the UID in itself is harmless and purely optional, the far reaching impact on empowerment of the citizens and prevention of impersonation has evoked much of the debate on the topic. Recently there have been many articles in the media against launch of UID in India.

Tvm: Eminent economist and a former Chairman of the Prime Minister's Economic Advisory Council, Prof. Suresh D Tendulkar passed away on June 21 in Pune. He was also a member of the Central Board of Directors of the RBI. Known for his extensive work on poverty, he was Professor of Economics at the Delhi School of Economics from 1978 to 2004. He was a member of the PM’s Economic Advisory Council from 2004 to 2008 and later, the Chairman from 2008 to 2009.

Tvm: Policybazaar.com, the leading online insurance aggregator and insurance website has introduced a unique online tax calculator (bit.ly/rxQZmS) which helps consumers save up to Rs.41, 715 income tax by planning their investments smartly. The campaign is an effort to educate consumers and help them save more tax.