Pre incorporation expense accounting & tax treatment

Pre incorporation, start up costs are expensed which includes legal and secretarial. Only those expenses recognised under PPE are capitalised. The it act has a different version 

The deduction allowed shall be lower of actual expense incurred or:

• 5% of the cost of a project (cost of project= cost of fixed assets as on the last day of the previous year)
• 5% of capital employed- applicable to a company (capital employed= paid up capital+debentures+long term borrowings as on the last day of the previous year)
• The amount so calculated above shall be allowed as a deduction equally over a period of 5 years. https://cleartax.in/s/amortization-preliminary-expenses