ALLOWABLE DEDUCTIONS SEC. 34. Deductions from Gross Income. - Except for taxpayers earning, conipensation intone arising from personal Services rendered under an eeaployeremplayee relationship. where ia deductions shall be allowed. under his Section other than Under subsection {M} hersot, in competing taxable incormé Subject to ineare tax under Sections 24 (Aj; 25 (Aj: 26; 27 4A), (B) and (Ch and 28 (A) )(2), there stall be allowied ‘the following decdeetions from rose iheame: : (A) Expenses, - a Ordinary and Necessary Trade, Business or Professional Expenses. + (a) dv Geners!. - There shall be allowed as deduction. from gross inedre all ihe ardinary- and necessary @xpenses pail of incurred during Bi: texcabile year in eserying on or whidh) are divestly attebutable to, the developnient, Managerieet, operation and/or conduct of the teat, business or exeecigu al Profession, indkiing: (2) \ reasonable’ allowance for salaries, wages, and other forms of compensation for personal Services actually rendered, including the grodsed-Up ionelary vblue of frijge benefit furnished or granted by the aeplayer to the employee: Provided. Thal the fics! tax impased under Section 33 hereof has been pakl; (i) Acreasoraite alowance for travel experses here afd alirgad, while away from home in the pursuit of trade, business or profession; Gi) A reasonable allowance for rentals ard/or other payments which are required aia condition for the continued ‘use or possession, for Purpoges'of the trade, business oF profession, of propetty to which the Eaxnayer 1eS-not leaker or is not taking litle or in whach he has no-equity other har. that fa Weieee, ueer or possesion; {ivy A reasdeable allowanoe for enburtainiant, amusement and recreation expenses during the taxable year, thet are directly dontiected to the development, management and operation of the trade, business or profession of the taxpayer, or that are directly related te! or in Juriherance of ie ‘Gunduct of his or iis trade, business Or exercise of a profession not to exceed such ceilings as the Secretary of Finance may, by rules adregilations prescribe, upon recommendation af the Commissiiner, takiog- into acount the needs as well as the special circumstances, nature end character of the industry, trade, Business, of profession of the Taxpayer: Provided, That any @ipensé incurred fer entertainment, amusement or recreation that is chalrary totaw, oral puble policy e public oriler shall in 56 ganebe alliwed'as adeduction. {b} Substantistion Requirements. Me deduction from gross ineame shall be alloived Under Subsection (\) hered? unless tie Laxpayer shall substantiate with Suffigignt evidenoe, Such ay offical recdipts or aller adequate records: {) the dmount of Ube expense being deducted, and {a} the diréet. connection or felation of the expense being dedueteil to the development, management, operation and/or conduct of the trade, business on profession of the taxpayer ic) Gribes, Kickbacks amt Orfier Similar Payments. - No deduction trem gross income shall be allowed! under Subsection (A) here! for any payment mada, inectly or indirectly, to an official or employes of Lie nalionel government, or Jo an sffidial ar eimployas of any local governement unit; orto ’an official or employes Of a government-owned or -cantrolied corporation, of bo an official or employee oF representative af a foreign gevernment, ar tea private torporetion; general professional parttership,on a-simnilar entity, if te: payment sonstitutes a hribs or kickback.