Tax of Co.
This query is : Resolved
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
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
14 September 2009
Can book cash expenses... If given donation u/s 80G
26 July 2025
Here’s a quick, straightforward take on your question about reducing company tax liability **after accounts are closed**:
---
### 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.
---
### 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 |
---
**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.
---
If you want, I can help you with tax planning strategies for the upcoming year to reduce tax liability legally. Interested?
---
### 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.
---
### 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 |
---
**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.
---
If you want, I can help you with tax planning strategies for the upcoming year to reduce tax liability legally. Interested?
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- LIC maturity claim whether taxable
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- EXPORT COMMERCIAL INVOICE HSN CODE
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
