Deduction u/s 35D! its urgent

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Shammi_Vision (Querist)

08 July 2010 Dear sir,
We have incorporated a new company on dated 02.03.2010. The expenses incurred on its incorporation are amounting to Rs. 25,900/-.
Now I want to know that how much amount of preliminary expenses can be claimed during the previous year 2009-10 under section 35D of the Income tax Act, 1961.

For your kind information the paid up capital of the company is Rs. 100,000 while it has no fixed assests and any other long term borrowings.

Plz reply its urgent

Thanks in advance
Shammi

Aditya Maheshwari

Aditya Maheshwari (Expert)

08 July 2010 Again
https://www.caclubindia.com/experts/reg-allowance-of-preliminary-expenses-u-s-35d-424485.asp

Aditya Maheshwari

Aditya Maheshwari (Expert)

08 July 2010 May be for others views.

Keeping the query open.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)

09 July 2010 This would be least of the following:
a) 5% of capital employed, or
b) Preliminary exp.

Hence, answer will be Rs. 5,000(5%X100000)

regards!!!

Message likes : 1 times

Aditya Maheshwari

Aditya Maheshwari (Expert)

09 July 2010 Same reply given.

Query resolved.

Message likes : 1 times

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