A public limited company did not commenced its operation and hence all the expenses related to the project as well as general office and administrative expenses are booked preoperative expenditure. Now, in F.Y. 2013-14, the company invested its surplus funds in FD from where it generated Interest Income of Rs. 3 lakhs.
My query is, can we deduct the general office and administrative expenses against the Interest Income viz. office electricity expenses, printing stationery, telephone, office staff salary, postage telegram etc etc.??
20 August 2014
There have been opinions provided by the EAC (Expert Advisory Committee) at different points of time on this issue. You will get the answer on the ICAI website.
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