Preincorporation expense
Premnath.S (Consultant) (24 Points)
26 July 2016
how to treat preincorporation expense
Premnath.S (Consultant) (24 Points)
26 July 2016
CA. Sunil Gokhale
(Teacher)
(1484 Points)
Replied 26 July 2016
CA Amrita Chattopadhyay
(Audit & Assurance)
(13349 Points)
Replied 28 July 2016
As per Income Tax Act, pre-incorporation expenses are treated as preliminary expenses as per Income Tax Act, 1961 and they are needed to be amortized over a period of 5 years.
CA. Sunil Gokhale
(Teacher)
(1484 Points)
Replied 28 July 2016
The query is under the 'accounts' sub-category.
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