prelimenary expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 can any set of expenditure can be set off as prelimenary expenditure?can we set off all expenditure in 5 years?

CA.Mini

CA.Mini (Expert)
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21 July 2010 preliminary expenditure eligible for writeoff is 35D of the Income Tax Act and in the AS-26.

Rahul Gupta

Rahul Gupta (Expert)
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22 July 2010 As per Section 35D deduction for preliminary expenses is restricted to 5% of the paid up capital of the company allowable in five installments.

Preliminary expenses generally include the expenses incurred in setting up the company and bringing it into existence.

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