Domestic Expenditure
The Act 896 stipulates that where an individual incurs expenditure in respect of herself or himself, the expenditure is said to be domestic expenditure if it is incurred:

• In maintaining the individual, including in providing shelter as well as meals, refreshment, entertainment or other leisure activities.
• In the individual commuting from home to work.
• In acquiring clothing for the individual. This does not include clothing that is not suitable for wearing outside of work.
• In educating the individual. Any education that is directly relevant to a business conducted by the individual. Any education that leads to a degree or diploma is not allowed.
• Interest on money borrowed to do any of (1) to (4) above

Excluded expenditure means
The Act 896 provides that the following expenses are ‘excluded expenditure’ and therefore, not allowed against a person’s income:

• Tax paid or payable under the Act 896 and any other tax law.
• Bribes and expenditure incurred in corrupt practices
• Interest, penalties and fines paid or payable to a government or a political subdivision of a government of any country for breach of any law or subsidiary legislation
• Expenditure to the extent incurred by a person in deriving exempt amounts or final withholding payments;
• Retirement contributions, unless they are included in calculating the income of an employee
• Dividends of a company
• The depreciation of any fixed asset
• Provisions (e.g. provision for doubtful debts, provision for warranty, provision for reconstructions etc.)