EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.
At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.
This Tax Alert explains Notification No. 38/2025 dated 23 April 2025 [1] (Notification) along with related FAQs issued by the Central Board of Direct Taxes (CBDT) , notifying certain laws in respect of which any expenditure incurred towards settlement of initiated proceedings for contraventions, would be disallowable for tax purposes. The laws as notified are: (i.) the Securities and Exchange Board of India (SEBI) Act, 1992. (ii.) the Securities Contracts (Regulation) Act (SCRA), 1956. (iii.) the Depositories Act, 1996. (iv.) the Competition Act, 2002.
The Notification has come into force from the date of its publication in the official gazette i.e., 23 April 2025.