Allowability of diminution in the value of long term investm

Hi All,

Just i want to know the allowability of diminution in the value of long term investment( shares in the subsidiary company) under the income tax laws. As per AS 13, any diminution in the value of long term investment, other than temporary , need ot be provided in the books. What is the tax treatment for this diminution provision charged to P&L Account.

Thanks

Nagaraj

 

 

Replies (1)
Originally posted by :R.L.Nagaraja Setty
"

Hi All,
Just i want to know the allowability of diminution in the value of long term investment( shares in the subsidiary company) under the income tax laws. As per AS 13, any diminution in the value of long term investment, other than temporary , need ot be provided in the books. What is the tax treatment for this diminution provision charged to P&L Account.
Thanks
Nagaraj
 
 Hi,

in my opinion there will not be any impact in the IT computation since the loss on account of the diminution in value will be considered separately in the computation statement.

"

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