Tax deductions allowed for spectrum expenditure

The income-tax department will allow expenditure deductions to telecom operators for payments made to acquire spectrum. The Central Board of Direct Taxes came out with new rules for this provision made under the Finance Act this year.

The deductions will be allowed for payment made to acquire spectrum. Actual payment will be considered irrespective of the method of accounting.

However, in case the department of telecommunications has allowed assesses to make deferred tax payment, the department will consider the amount payable by the assessee had it made full upfront payment.