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Account heads

Satvir Singh (Newly minted CA) (1733 Points)

22 November 2011

Can anyone please guide me regarding what is appropriate head for:

1) Toll tax paid (is "vehicle repair & maintanence" proper head)

2) Donation to gaushala & gurudwara (can it be shown under "Misc. expenses")

3) Expenses on Medical treatment of employee, injured during work (is "worker & staff welfare" appropriate)

Thanks in anticipation

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2 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 23 November 2011

hi,

the following Account Heads can be used:

Toll Tax Paid: It can be Rent, Rates & taxes or an alternative account head would be Duties & Taxes. In the narration you can write the details of the taxes incurred.

Donation paid: Please check if the entity to whihc donation is being paid is being eligible to claim deduction u/s 80G of the Income-Tax Act, if yes then show it as donatio & at the time of preparing the return you cna claim the deduction u/s 80G. Else if the entity is eligible for claiming deduction u/s 80G then you cna show it under the head Office Expenses, so that you will be able to claim the deduction & the AO will not raise query, if your case selcted for scrutiny.

For Employee's medical expenses, you can show it under the head 'Employees Welfare Expenses'