Preliminary expenses treatment
This query is : Resolved
20 February 2015
Dear sir
How can we traet the preliminary expenses as per Income tax act 1961 and Companies act 2013, when it was incurred while incorporating the company...
whether the same procedure is applicable to Firms also?
How can we traet the preliminary expenses as per Income tax act 1961 and Companies act 2013, when it was incurred while incorporating the company...
whether the same procedure is applicable to Firms also?
20 February 2015
Deduction of preliminary expenses according to Income Tax U/s 35D:- only Indian company and a resident Indian can claim deduction of preliminary expenses. Deduction of preliminary expenses are given in 5 equal installment beginning with the previous year of commencement of business or previous year in which the extension of undertaking is completed or new unit commences production or operation.
The benefit of the preliminary expenses is long-term so it is treated as intangible asset and shown in Balance sheet under Missilinous assets. These expenses will be written off in 5 equal year installment in profit and loss A/c. you can also transfer whole amount in single year.
The benefit of the preliminary expenses is long-term so it is treated as intangible asset and shown in Balance sheet under Missilinous assets. These expenses will be written off in 5 equal year installment in profit and loss A/c. you can also transfer whole amount in single year.
Message likes :
1 times
20 February 2015
is it applicable for partnership firms and charitable trust also..?
20 February 2015
The expenses will be minimal on such entities it can be charged/claimed in one year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Not able to file ITR
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- Presumptive income under Income tax act 2025
- Clarification Required on Business Code for 44ADA
- Under construction property in ITR
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
