Treatment of Insurance in proprietory business
This query is : Resolved
sumit agarwal
(Querist)
25 March 2011
Dear Friends,
Should Medical/Life/Other Insurance be deducted from capital a/c or Should it be shown in P&L a/c in case of Proprietorship business? What are the tax implications?
Your Contribution will be appreciated.
Should Medical/Life/Other Insurance be deducted from capital a/c or Should it be shown in P&L a/c in case of Proprietorship business? What are the tax implications?
Your Contribution will be appreciated.
25 March 2011
Generally taken to Capital Account,except for professional indemnity insurances and employee insurance ,,,insurance related to business
Message likes :
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Murtaza I Bhagat
(Expert)
26 March 2011
for life insurance & mediclaim you have to debit the capital a/c as withdrawl bcz it not a expense
but other ins. like machinery,shop,vehicle etc. you have take in P&L as expense.
but other ins. like machinery,shop,vehicle etc. you have take in P&L as expense.
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