Tax of Co.

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Vipul (Querist)
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14 September 2009 1 Company has computed its taxabilit,
there is no disallowances other than 40A(7)-Gratuity.
No other sections avaiable to reduce tax..
Co. want to pay lesser tax.
Anything that co. can do ???
Legally or llegaly ???
Any Idea any body can suggest...
Thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 September 2009 Can book cash expenses... If given donation u/s 80G

Vipul

Vipul (Querist)
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14 September 2009 accounts are closed
not possible

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Here’s a quick, straightforward take on your question about reducing company tax liability **after accounts are closed**:

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### Can the company reduce tax liability at this stage?

* **Legally?**
Once accounts are closed and books finalized, **no major adjustments can be made** to reduce taxable income except through legitimate provisions like donations, or tax-saving investments already recorded.

* **Section 40A(7) Gratuity** disallowance is already noted — no other disallowances.

* **Donations under Section 80G**:

* If the company has made donations to eligible charitable institutions, it can claim deduction.
* But since accounts are closed, making new donations now won’t help for this year.

* **Book cash expenses**:

* Not advisable, and could be illegal or cause trouble during audit/assessment.
* Falsifying books is tax evasion and attracts penalties and prosecution.

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### Summary:

| Option | Possible? | Comments |
| -------------------------- | ------------------------------- | --------------------------------------------- |
| Additional deductions | Unlikely after accounts closure | Donations, expenses must be recorded in books |
| Donations (Section 80G) | Only if already done in FY | Cannot be added post closure |
| Booking cash expenses | Illegal and risky | Can lead to penalties and prosecution |
| Tax planning for next year | Yes | Better to plan ahead |

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**Bottom line:** If accounts are closed, no legal way to reduce tax now except for what’s already recorded. Focus on tax planning for the next financial year.

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If you want, I can help you with tax planning strategies for the upcoming year to reduce tax liability legally. Interested?

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