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.
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
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- TDS _Long term Capital Gain ref.sec 214 Table 2
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Traces submitting correction statement error
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- NRI INSURANCE ADVISOR
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
