preliminary exp...

the priliminary expenses should be written off over five equal instalments. sec. 35D of income tax act deals with this. plz refer for further clarifications.

with introduction of AS 26 preliminary expenses have to be written of in the year in which they r incurred..... while under Income tax it is allowed in 5 years starting from the year in which the business is commenced....... the difference in the two treatment would give rise to deferred tax adjustments under As 22.