About preliminary expenses
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 November 2014
Dear Sir,
What is the treatment of preliminary expenses.My query is Preliminary expenses incurred in C.Y. Rs. 15000. As per Companies Act 2013 all Preliminary Expenses should be in C.y. No preliminary expenses should be carry forworded.
But as per Income tax Act Preliminary expenses should be allowable in 5 Yrs.
Then what is treatment of disallowable expenses.
What is the treatment of preliminary expenses.My query is Preliminary expenses incurred in C.Y. Rs. 15000. As per Companies Act 2013 all Preliminary Expenses should be in C.y. No preliminary expenses should be carry forworded.
But as per Income tax Act Preliminary expenses should be allowable in 5 Yrs.
Then what is treatment of disallowable expenses.
CA Kumar Mukesh
(Expert)
30 November 2014
As per section 35D of Income Tax Assessee has claim preliminary expenses in 5 years i.e. 20% for year.
Further, the aggregate of total preliminary expenses cannot exceeds 5% of total cost of the project/capital
Further, the aggregate of total preliminary expenses cannot exceeds 5% of total cost of the project/capital
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