law: 7. Computation of chargeable receipts.-
  (1) Subject to the provisions of sub-section (2), the following deductions shall be allowed in computing the chargeable receipts of any previous year-
  (i) the amount of charges accruing or arising in an earlier previous year which is established to have become a bad debt during the previous year: Provided that such charges have been taken into account in computing the chargeable receipts of the assessee of any earlier previous year and the amount has been written off as irrecoverable in the accounts of the assessee for the previous year during which it is established to have become a bad debt;
  (ii) any amount payable by way of sales tax, entertainment tax or tax on luxuries in respect of any charges included in the chargeable receipts of the previous year;
  (iii) the amount of tax chargeable under this Act.
  Explanation.-For the removal of doubts, it is hereby declared that in computing the chargeable receipts of a previous year, no deduction, other than the deductions specified in this sub-section, shall be allowed from the total amount of charges received by, or accruing or arising to, the assessee. (2) In computing the chargeable receipts of a previous year, the amount of charges which is received by or which accrues or arises to the assessee before the expiry of one month from the end of the month in which this Act comes into force 1[or after the 27th day of February, 1982] shall not be taken into account.
  1. Ins. by Act 14 of 1982, s. 41 (w.e.f. 1-4-1982).