Pre incorporation transactions

can we account for transactions before incorporation date of firm for income tax purpose.
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Quick Summary
Generally, transactions that occur before a company's incorporation date are not eligible for income tax purposes. The primary exception is for expenses directly related to the incorporation process itself. If a partnership deed explicitly allows for operations and associated expenses before the official incorporation date, these might be admissible. However, without such a clause in the deed, these early expenses are typically not recognised for tax relief.

No. Not eligible, unless the expenses are related to incorporation of firm.

Transactions are related to firm before incorporation other than incorporation expenses

Check if the partnership deed has allowed the operation before incorporation date, including such expenses.

Nothing is mentioned as such in partnership deed

In that case its not admissible...

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