I had taken business loan of sum Rs 18 lakhs in the last financial year .. in this financial year i have closed that loan but last year i have not shown the processing fees can i show it this year.... while closing it
as per the matching principle of accounts the income and expenses belonging to the same period can be claimed ... so last year expenses could not be claimed...
for the counting purpose debit whole processing fee to P &L . you can only show half as a current period and half as a last yr expense so spread it over the loan tenure same as interest. the half of the amount should be disallowed as a prior period items for the taxation purpose
CAclubindia
