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Tax computation/corporate tax

Yasaswi Gomes new (Finance ) (4484 Points)

08 August 2023

Can someone give me examples of disallowable and allowable expenses for income tax purposes?

Where can I find that list?

Txs

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10 Replies

sabyasachi mukherjee (26083 Points)
Replied 08 August 2023

Sec 30 to Sec 40 of Inxome from business and Profession.

1 Like

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 08 August 2023

If Expenses without payment, Payments by cash , payment of statutory dues beyond due dates etc

7 Like

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 08 August 2023

They are disallowances and depreciation+ capital expenditure are tax allowed expenses then.

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 08 August 2023

Please check the following link...

https://incometaxindia.gov.in/hindi/Documents/Students/Learning/Disallowance%20of%20Business%20Expenditure-theory.pdf

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sabyasachi mukherjee (26083 Points)
Replied 08 August 2023

The sections which I hv mentioned is an exhaustive one.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 08 August 2023

@ Yasaswi,

Depreciation as per books ( Companies act ) will be disallowed in Tax computation and Depreciation as per Income Tax act is allowed

7 Like

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 08 August 2023

Nice to learn this bit to learn corporate taxation. And now the difference between these two is deferred liability.

sabyasachi mukherjee (26083 Points)
Replied 09 August 2023

There are two ways you can learn from if you are interested

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 10 August 2023

Deferred Tax arises not only because of depreciation but also due to timing differences like few expenses are allowed only if tds payment is done on time , statutory dues allowed only in the year of payment,

adjustment of previous year disallowances on actual payment in the current FY etc

7 Like