Pvt. ltd. company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 January 2016
Running pvt. ltd. company (software), If profit of a f.y. invest in research & development purpose within the f.y then should i pay tax for it? also if get the loss from investment of profit amount, then should company pay tax to the government? please advice & help.
28 January 2016
If the R&D expenditure relates, to business of the company i.e. software, then you may claim such expenditure u/s 37 of the Income Tax Act, 1961. Do not name the account head as "R&D". Any software company needs to spends money on R&D to bring a new software. However, if you are going to apply for any copyright for the same, you need to capitalise such expenditure and can claim depreciation u/s 32(1)(ii).
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 January 2016
Actually we are website developing, php programming company. may i show the investment in r&d purpose to avail tax benefit?
28 January 2016
A software development company may have to capitalise R&D expenditure spent on development of software. On completion of development it is an intangible asset i.e. copyright and depreciation has to be claimed u/s 32 of the Income Tax Act.
Message likes :
1 times
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
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Annual return in Gst
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
