• State and local taxes Under income tax act You cannot deduct state and local taxes on your federal income tax return. However, there are some exceptions, such as sales taxes paid in states without an income tax.
• Fines and penalties under income tax act You cannot deduct fines and penalties paid to the government, such as traffic tickets or parking tickets.
• Charitable contributions under income tax act You can only deduct charitable contributions that you make to qualified organizations. For example, you cannot deduct contributions to political organizations or charities that do not have 501(c)(3) status.
• Personal expenses under income tax act. You cannot deduct personal expenses, such as food, clothing, and entertainment.
• Interest on student loans under income tax act. You can only deduct interest on student loans if you are a student and you are using the loan to pay for qualified education expenses.
• Medical expenses under income tax act You can only deduct medical expenses that exceed a certain percentage of your adjusted gross income.
• The rules for deducting expenses can change, so it is important to check the latest tax regulations.
• You may be able to deduct expenses that are not specifically mentioned above, but you will need to meet certain requirements under income tax act.
• If you are unsure whether an expense is deductible, you should consult with a tax advisor under income tax act.

EXAMPLES FOR AMOUNT CANNOT BE UTILISED FOR CERATIN PURPOSE

• Contributions to provident funds, pension funds, and superannuation funds: These contributions are exempt from income tax under Section 80C of the Income Tax Act, However, the amount cannot be utilized for the purchase of a house or a car.
• Life insurance premiums: The premium paid for a life insurance policy is exempt from income tax under Section 80C of the Income Tax Act, 1061. However, the amount cannot be utilized for the payment of medical expenses.
• Tuition fees for education: The tuition fees paid for the education of oneself, spouse, or children is exempt from income tax under Section 80C of the Income Tax Act, However, the amount cannot be utilized for the payment of hostel fees.
• Donations to charitable organizations: Donations made to charitable organizations are exempt from income tax under Section 80G of the Income Tax Act, 1961. However, the amount cannot be utilized for the payment of taxes.
• Interest on home loans: The interest paid on a home loan is eligible for a deduction under Section 24 of the Income Tax Act, 1961. However, the amount cannot be utilized for the payment of property taxes.

These are just a few examples, and the specific rules may vary depending on the state. It is important to consult with a tax advisor to determine the specific deductions and exemptions that are available in your state.

Here are some additional things to keep in mind:

• The amount that can be claimed as a deduction or exemption is limited.
• The deduction or exemption may be subject to certain conditions.
• The deduction or exemption may only be available for a certain period of time

• FAQ QUESTIONS FOR AMOUNT CANNOT BE UTILISED FOR CERTAIN PURPOSE

 Can I use my tax deduction for personal expenses under income tax act?

No, you cannot use your tax deduction for personal expenses. Tax deductions are only allowed for expenses that are incurred in the course of earning income. Personal expenses, such as food, clothing, and entertainment, are not deductible.

• Can I use my tax deduction for gifts to friends and family under income tax act?

No, you cannot use your tax deduction for gifts to friends and family. Gifts are not considered to be expenses incurred in the course of earning income.

• Can I use my tax deduction for political contributions under income tax act?

No, you cannot use your tax deduction for political contributions. Political contributions are not considered to be charitable contributions, which are the only type of deduction that can be used for gifts to organizations.

• Can I use my tax deduction for gambling losses under income tax act?

No, you cannot use your tax deduction for gambling losses. Gambling losses are not considered to be ordinary and necessary expenses.

• Can I use my tax deduction for fines and penalties under income tax act?

No, you cannot use your tax deduction for fines and penalties. Fines and penalties are not considered to be deductible expenses.

These are just a few examples of amounts that cannot be utilized for certain purposes under income tax. For more information, you should consult with a tax advisor.

CASE LAWS FOR AMOUNT CANNOT BE UTILISED FOR CERTAIN PURPOSE

There are many case laws on the topic of amounts that cannot be utilized for certain purposes under income tax. Here are a few examples:

• In the case of A.V. Birla & Co. v. CIT of income tax act, the Supreme Court held that a sum of money received by a company as compensation for the compulsory acquisition of its property cannot be utilized for the purposes of charitable donations.
• In the case of CIT v. Dalmia Jain Airways Ltd of income tax act., the Supreme Court held that a sum of money received by a company as a loan cannot be utilized for the purposes of paying dividends to its shareholders.
• In the case of CIT v. Escorts Ltd of income tax act., the Supreme Court held that a sum of money received by a company as a gift cannot be utilized for the purposes of purchasing assets for its business.
• In the case of CIT v. Indian Hotels Co. Ltd of income tax act., the Supreme Court held that a sum of money received by a company as a capital contribution cannot be utilized for the purposes of paying salaries to its employees.
• In the case of CIT v. Steel Authority of India Ltd of income tax act., the Supreme Court held that a sum of money received by a company as a refund of taxes cannot be utilized for the purposes of making investments.

These are just a few examples of the many case laws on the topic of amounts that cannot be utilized for certain purposes under income tax. The specific rules and regulations on this topic can vary depending on the jurisdiction. It is important to consult with a tax advisor to understand the specific rules that apply in your case.

The amount in question must be clearly identifiable as being received for a particular purpose.

The amount must not be commingled with other funds.

The amount must be used for the intended purpose within a reasonable period of time.

If the amount is not used for the intended purpose, it may be subject to taxation.