Question
This query is : Resolved
Guest
Guest
(Querist)
23 February 2010
We are a New Private Limited Company
We are doing feasibility study for a large power project but at the end of 31st March 2010 (first financial year of company) feasibility will not end.
In the meantime we have incurred office expenses, expenses on payment of consultants (who is doing feasibility).
We also earned some interest income on our balance in bank and FD's
What is the treatment of these Expenses and Income under Income Tax Act.
Give Your Expert Opinion
We are doing feasibility study for a large power project but at the end of 31st March 2010 (first financial year of company) feasibility will not end.
In the meantime we have incurred office expenses, expenses on payment of consultants (who is doing feasibility).
We also earned some interest income on our balance in bank and FD's
What is the treatment of these Expenses and Income under Income Tax Act.
Give Your Expert Opinion
23 February 2010
Regarding Income, the income shall be shown in the year of earning. However, the expenditure regarding the feasibility study shall be considered as preliminary expenditure for the project and shall be capitalised in the project cost. In case of any other opinion, do let me know.
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