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Income tax fees paid

Atharv Sankliya (1306 Points)

30 December 2021

income tax fees paid is recorded in legal expenses ??

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Tanuj Chandra Saxenaa (Company Secretary) (7070 Points)
Replied 30 December 2021

In Tally show under Duties and Taxes Head

It is a indirect expense which is chargeable to the Debit Side of Profit and loss Account

Atharv Sankliya (1306 Points)
Replied 30 December 2021

Can we also recorded it as professional fees

CA Aakarsh Jain (CA) (10216 Points)
Replied 30 December 2021

No expense incurred as income tax fees, penalty or tax under income tax are allowed as deduction.

However if u mean fees paid to any professional or lawyer related to income tax then it shall be debited to P & L A/c.

Also it cannot be debited to head 'Duties n Taxes' (wrongly answered above)

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Tanuj Chandra Saxenaa (Company Secretary) (7070 Points)
Replied 30 December 2021

Any tax paid is shown under duties and taxes head in tally. Sorry I read it as income tax paid, and did not see income tax fees paid. Income tax fees paid can be recorded as professional fees.

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