Course of heiring

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2013 Dear Koushik Sir,
I would like to ask that generally how many types of expenses can be charges in Profit & Loss A/c and allowable under IT ACT 1961.
Thanking You, for your co-operation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 please refer to section 28 to 43.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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19 November 2013 There are only 2 types of expenses

Capital and Revenue

Revenue expenditure is generally allowed as a deduction unless otherwise prohibhited.

Capital expenditure is generally NOT allowed as a deduction unless otherwise specifically allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Respected Koushik Sir,
I would like to know that whether Interest received from KVP (Kisan Vikash Patra) is exempt from tax or not, is yes then which section it is defined.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 it is not exempt...only TDS is not applicable. should be included in income under "income from other sources"

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Which Section can i read for this...
thank you Sir.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 the rule is simple...unless a said income is not included in section 10 or any specific exemption such as money received from relatives (section 56) it is taxable income.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Actually Sir on the course of hearing..the Ao/ITO has added all the accrued interest on KVP in income from other source and it is correct also but I got a circular No.- 566 dated 17/07/1990, will it help me while filing the appeal.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 that circular is for section 11(5). relevant only for charitable organizations.

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