priyanka narale
PCC student
[ Scorecard : 407]
|
Posted On 12 December 2008 at 18:09
|
In calculating income from business and proffession, if
Provision for income tax is 4000/- and it is excess to the extent of 3000/-
the inadmissible amount should be 3000. am i right?
but the solution in the book says 4000/- (full amount)
Plz guide me.......
|
|
|
DHARMA
LEARNER
[ Scorecard : 1022]
|
Posted On 12 December 2008 at 18:17
|
Hi,
Income-tax is not an allowable expenditure. Hence, income-tax debited/claimed as deduction has to be added back to arrive at the taxable income. Hence, Rs.4000/- has to be added back.
If the provision were to be Rs.1000/- (correct value), income would have been more by Rs.3000. Hence, either way, taxable income will remain same.
|
|
|
|
.jpg)
RANJIT
SERVICE
[ Scorecard : 26]
|
Posted On 12 December 2008 at 18:24
|
| Originally posted by :priyanka narale |
| " |
In calculating income from business and proffession, if
Provision for income tax is 4000/- and it is excess to the extent of 3000/-
the inadmissible amount should be 3000. am i right?
but the solution in the book says 4000/- (full amount)
Plz guide me.......
Hi..
Provision for income tax, provision for fbt alls are inadmisible expenses what ever the amount was.
|
" |
|
|
|
CA Sheetal Gude
CA , CWA
[ Scorecard : 54]
|
Posted On 12 December 2008 at 18:28
|
hi priyanka, as a general rule all tax provisions are disallowed for computing p&g
|
|
|
priyanka narale
PCC student
[ Scorecard : 407]
|
Posted On 12 December 2008 at 18:35
|
oh sorry guys...... its income tax i.e personal in nature n tax on property so as it is , it is not taxable......it dint strike me while solving......thanks 4 reminding me.
|
|
|
priyanka narale
PCC student
[ Scorecard : 407]
|
Posted On 12 December 2008 at 18:36
|
| Originally posted by :Dharmaraju |
| " |
Hi,
Income-tax is not an allowable expenditure. Hence, income-tax debited/claimed as deduction has to be added back to arrive at the taxable income. Hence, Rs.4000/- has to be added back.
If the provision were to be Rs.1000/- (correct value), income would have been more by Rs.3000. Hence, either way, taxable income will remain same. |
" |
thank u 4 reminding me....
|
|
|
CA CHINTAN AJMERA
Chartered Accountant
[ Scorecard : 2974]
|
Posted On 12 December 2008 at 20:28
|
Income-tax is not an allowable expenditure. Hence, income-tax debited/claimed as deduction has to be added back to arrive at the taxable income. Hence, Rs.4000/- has to be added back.
|
|
|
