Tax Audit Query: Disallowed Income Tax Expenditure

Audit Query

anand kumar

20 Points Posted on 25 September 2020

Let's just say you are Tax Auditing a Firm ... and suppose Income tax paid appears on the debit side of Profit and loss account ...should it be adjusted in the ITR ...if yes How ?

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Quick Summary

This discussion addresses a common query during tax audits: how to handle income tax paid when it appears on the debit side of the Profit and Loss account. The consensus is that income tax paid is a disallowed expenditure under Section 40a of the Income Tax Act. Therefore, it should be shown as a disallowed expenditure within the Income Tax Return (ITR).

CA Kushwanth AVSR

CA in Practice CMA by Qualification

20 Points Posted on 27 September 2020

It is a disallowed expenditure under section 40a. In ITR show it as disallowed expenditure

anand kumar

20 Points Posted on 27 September 2020

Thank you !!!

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Audit Query

anand kumar

CA Kushwanth AVSR

anand kumar

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