What can India businesses claim as expenses?

Yes — advertising and marketing costs are fully deductible under Section 37(1) as revenue expenditure incurred to promote business. This includes digital advertising (Google Ads, Meta Ads), print, PR, and brand events. One-time brand creation costs (logo design, trademark registration) may be capitalised. GST on advertising services is creditable for GST-registered businesses.

Yes — insurance premiums for business policies (fire, theft, public liability, professional indemnity, keyman insurance) are deductible under Section 37(1). Premiums for policies solely covering the life or health of directors for personal benefit are not deductible as business expenses. Group health insurance for employees is deductible and also qualifies for GST input tax credit (18% GST on insurance services is creditable for B2B policies).

Yes for genuine business travel — air, rail, taxi, and hotel costs for client meetings, conferences, and business trips are deductible under Section 37(1). Personal travel mixed with business is only partially deductible in proportion to business use. International travel requires stronger documentation. No deduction for the personal portion.

Partially deductible. There is no blanket restriction on entertainment expenses in the Indian Income Tax Act (unlike the old Section 37(2A) which was repealed). Client entertainment is deductible under Section 37(1) if incurred wholly and exclusively for business. However, the onus is on the company to prove the business purpose. GST input credit on restaurant bills is blocked under Section 17(5) of the CGST Act.

Yes — depreciation on tangible and intangible business assets is deductible under Section 32 of the Income Tax Act at prescribed rates using the Written-Down Value (WDV) method. The key rates are: computers/software 40%, general plant and machinery 15%, furniture 10%, vehicles 15-30%, buildings 5-10%. Assets bought after 3 October in the financial year get only 50% of the rate for that year.

Yes — salaries, wages, bonus, and allowances paid to employees are fully deductible under Section 37(1) of the Income Tax Act. The employer must deduct TDS under Section 192 at applicable slab rates and comply with EPF (12% employer contribution) and ESIC obligations. Employer PF contributions are also deductible.

Yes — interest paid on loans taken for business purposes is deductible under Section 36(1)(iii) of the Income Tax Act. This includes interest on working capital loans, term loans for equipment, and overdrafts. Interest on loans for capital acquisition is capitalised with the asset cost until the asset is put to use, then deductible via depreciation. Interest paid to directors or related parties is scrutinised — must be at arm's length rates.

Yes — rent paid for business premises (office, factory, warehouse) is fully deductible against corporate income tax under Section 37(1) of the Income Tax Act 1961, provided it is incurred wholly and exclusively for business purposes. TDS at 10% under Section 194I must be deducted if annual rent exceeds INR 2,40,000.

Yes — fees paid to accountants, lawyers, consultants, and other professionals are deductible under Section 37(1). TDS at 10% under Section 194J must be deducted if professional fees to a single payee exceed INR 30,000 in a year. Technical services fees attract 2% TDS (reduced rate from 1 April 2020 for technical services).

Yes — annual software subscriptions and SaaS tools (accounting software, CRM, project management, cloud storage) are deductible as revenue expenses under Section 37(1). Perpetual software licences may be capitalised and depreciated at 40% under the IT Act. GST (18%) on software is creditable if you are GST-registered. TDS at 2% under Section 194J applies to royalty-type software payments above INR 30,000/year.