Prelimiary Expenses - Please reply
This query is : Resolved
25 December 2010
Mr A, an assessee had incuredd Rs 25 lakhs as prelimiary expenses. Instead of claiming 1/5 th of the total in 5 years, he claimed 1/10th of the total expenses in 5 years.
so after the 5 th year, he had a balance not written off amounting to Rs. 12.5 lakhs.
Can the entrire balance be amorties in the 6 th year? IS it allowable under the income tax act? 35 D says has to be claime din 5 years. Can the balance be claimed now.
Please reply
so after the 5 th year, he had a balance not written off amounting to Rs. 12.5 lakhs.
Can the entrire balance be amorties in the 6 th year? IS it allowable under the income tax act? 35 D says has to be claime din 5 years. Can the balance be claimed now.
Please reply
Aditya Maheshwari
(Expert)
25 December 2010
if entire expenses have been claimed in the intial 5 years then additional claim not allowable.
In books balance amount can be amortised in the 6th year.
If company incorporatted before 31.03.1998 then deduction was allowable in 10 instalments.
In books balance amount can be amortised in the 6th year.
If company incorporatted before 31.03.1998 then deduction was allowable in 10 instalments.
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