Pre incorporation transactions

can we account for transactions before incorporation date of firm for income tax purpose.
Replies (5)
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...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details