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Prior Period Expenses for Travelling

Mahesh Vidwans (Student CA Final ) (61 Points)

17 June 2019

Is the prior period expenses for traveling expenses of company employees incurred for business purpose allowed or not? If yes how to treat?

please advise

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3 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 17 June 2019

Prior period expenses irrespective of which heading are disallowed under income tax.

Mahesh Vidwans (Student CA Final ) (61 Points)
Replied 25 June 2019

Thanks Sir

But Sir, I have one query, prior period expenses are not allowed in current year, then suppose any prior period income is there

Then it shall be taxed in current year? if yes then same principle should be applicable to expenses & should be allowed?

Thanks in advance

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 29 July 2020

Prior period expenses are not allowed in current year untill and unless the expenses have crystalised during the year.

Prior period expenses are not allowed in current year, but any prior period income is taxable as assessee is suppose to hide income, not expenses..