Deduction of expenses against non operating income

Dear All,

 

Greetings.

 

A public limited company did not commenced its operation and hence all the expenses related to the project as well as general office and administrative expenses are booked preoperative expenditure. Now, in F.Y. 2013-14, the company invested its surplus funds in FD from where it generated Interest Income of Rs. 3 lakhs.

My query is, can we deduct the general office and administrative expenses against the Interest Income viz. office electricity expenses, printing stationery, telephone, office staff salary, postage telegram etc etc.??

Replies (3)

Kindly provide your valuable opinion on the above matter.

 

Regards,

CA Milan Agrawal

Is someone here to provide some input in this matter?

 

Regards,

CA Milan Agrawal

1. For Income Tax purposes, you cannot deduct those expenses from Interest Income.

2. For Accounting Purposes, I have no idea. May be you can!

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