Income tax

Dear Raj,

Only the expenses that are wholly & esclusively incurred for the purpose of the business is only allowed as an deduction while calculating the income from business.

Income-tax is not incurred for the purpose of business, hence it is disallowed if it is debited to P&L A/c.  Provision is also not allowed.

Agree with karandikar's.

Any type of direct taxes (Income Tax & Wealth Tax ) not allowed as expenditure .....reffer to section 40(ii) of the income tax act, 1961....

it is irrelevant whether assessee is a firm, individual or company or any body else......direct taxes not allowed for all assessees......