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Accounting of payments under sec-80c to 80u for individual

Others 154 views 4 replies

Pranav

owner

226 Points Joined April 2011

If we have made payments like Mediclaim and Tution Fees which are allowable as deduction under Sec-80D and Sec-80C of Income Tax Act, 1961, then where shall we show those amounts in our books of accounts being an INDIVIDUAL?

In Profit and Loss account as indirect expenses? or
In Capital Account?

Replies (4)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Are you running any business...?
You would be asking under Business account...?

Mahesh

CA Student

338 Points Joined January 2010

Assuming that you make payment from your business bank account, This expenses is not related to your business, these are personal in nature and hence will be treated as drawing and your capital get decrease.

Pranav

owner

226 Points Joined April 2011

Yes, the main Income is under the head PGBP and payment is made from personal bank account (There is no separate bank account of the Business as it is a proprietory business)