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Income Tax Deduction for Ransom Amount

In case you are kidnapped during a business trip, and have to pay a ransom to abductors, the amount paid to the kidnappers can be shown as "business expenditure" to claim tax exemption on it. Sounds crazy? Well, that’s what the order issued by Jabalpur High Court has to say. Sukhnandan Jain, a businessman, was allowed to claim tax deduction on the money he had to pay to kidnappers.

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Uploaded on September 1, 2011
Taken on August 31, 2011