Under the Code, the following expenditure will not be allowed as a deduction in the computation of total income :-
(a) any expenditure attributable to income which does not form part of the total income under this Code and determined in accordance with the method as may be prescribed;
(b) any expenditure incurred for any purpose which is an offence or which is prohibited by law;
(c) any provision made by a person for any liability if the liability remains unascertained by the end of the financial year; and
(d) any expenditure where the source of funds for such expenditure is unexplained;
(e) any expenditure incurred by a non-resident in respect of,-
(ii) fees for technical services; or
(iii) any income which is liable to tax at the special rate of income-tax specified in Part II of the First Schedule.