Income tax

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Even if you capitalise the income tax paid the same will not be an allowable expenses for the purpose of Income Tax. So better to write it off instead of capitalising. And also on what basis can they capitalise Income Tax paid?

Income tax paid can not be capitalised. you should write off the expenses every year

One more thing i saw in few companies.

they keep these two head

1. Provision for Taxation (Under Current Liabilities & Provisions)

2) Amount paid towards Income Tax. (Under Loans & Advances)

they keep these head stands till the assessment is complete. and as per assessment they accordingly write off the both head.

Thanks

Praveen

It is an accounting treatment, My doubt is that can it be done?

Thanks to everyone who has replied.