Prior period expenses are allowed or not

Dear Members

Kindly suggest me (with reference to any section of IT act, 1961) that whether prior period expense is allowable or not? Similarly whether prior period income is taxable or not?

 

Replies (1)

Expenses relating to a particluar period have to be claimed in that year. Only exception is that if the expenses realting to prior period came to light/was demanded/liability arose in current period then it can be claimed as expenses of current year. In fact as per the accounting principle such expenditure are not prior period expenses at all.

Income also similar principles are involved. BUt in the case of income if it was not offered for tax in the year in which the right to receive or the actual receipt took place, two options are revision of that years return. If the time limit for revision is expired then better to declare in current return. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details