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URGENT ON PRIOR PERIOD

Navita (profession) (96 Points)

22 November 2007

prior period payments are they allowed as deduction from business income for a company.if not can u pls quote a section.

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girish (article) (567 Points)
Replied 22 November 2007

Prior period expenses are not related to current year therefore such expenses are disallowed.

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 22 November 2007

As per Income Tax Act income of the previous year ( i.e. financial year) is to be determined.....therefore income / expenses of the relevant financial year is only to be considered .........you can check the charging section of IT act

Adv. S Sharma (Lawyer) (574 Points)
Replied 22 November 2007

hi Navita prior period exp. are disallowed

Anil (Education) (87 Points)
Replied 22 November 2007

Prior period is not allowed as deduction while computing profits and gains of business and profesion .............. It is not covered by any specific section.......... However when you claim any deduction under section section 37 the basic condition is that the expense should relate to previous year i.e., relevabt assessment year.............. Thank you...............