preliminare exp.

Pushkar is right.

Under Income Tax Act, all expenditure which are of capital nature, is not allowed as deduction unless specifically provided. In respece of the same, a ENABLING provision is provided by way of section 35D. Accordingly, only those preiliminary expenses which are specifically enumerated in the said section, are allowed to be deferred and amortised over a period of 5 years. All other preliminary expenditure which are not specifically mentioned in the said section are treated as capital expense for which no deduction is allowed under IT Act.

as per new ammendment on accounts this expenses should wretten of in 1st year itself