Teatment of expenses disallowed in previous year
This query is : Resolved
29 November 2013
Hello All,
In FY-2012-13 in books of accounts we had made the provision for future loss that may incur due to onerous contract entered during the year. We disallowed the provision in computation for FY-2012-13.Is the disallowance is correct?
In FY-2013-14 the provision will be reversed in books of accounts. How it will be treated in tax computation for FY-2013-14. Whether it will be deducted from income? if yes, under which section?
In FY-2012-13 in books of accounts we had made the provision for future loss that may incur due to onerous contract entered during the year. We disallowed the provision in computation for FY-2012-13.Is the disallowance is correct?
In FY-2013-14 the provision will be reversed in books of accounts. How it will be treated in tax computation for FY-2013-14. Whether it will be deducted from income? if yes, under which section?
29 November 2013
dear Amol,
Yes, this reversal won't result in increase in your taxable income. the principle is simple - what has not been allowed as an expense, its reversal wont account for as an income.
Yes, this reversal won't result in increase in your taxable income. the principle is simple - what has not been allowed as an expense, its reversal wont account for as an income.
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
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- STCG FOR GOLD ETFs
- Specified Profession
- Suggestions required for income tax filing-software (FY 2025-26)
- GST ON DAMAGED GOODS
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
