profits and gains from business and profession

1689 views 2 replies

                                             

hiii, everyone pls answer it......

state with reasins in brief whether the following expenses are permissible as deduction while computing " profits and gains from business and profession". 1. travelling expenses of rs. 20,000 incurred by a director on a tour to U.S.A in connection with negotiation of purchase of a new machinery, 2. interest paid to bank rs. 15,000 in connection with overdraft obtained for paying dividend. 3. rs. 20,000 were spent in the previous in connection with statutory income tax proceedings. 4. an expenditure of rs. 20,000 incurred towards cost of neon signs fixed on office premises for advertising the products of the assessee.

Replies (2)

Dear Simranjeet,

Actually all above cases are decided case laws -

1) Travelling expens - Allowed in the form of depreciation, being incurred in relation to a capital asset

2) Interest on OD for dividend - Allowed, being paid on account of commercial expidency

3) Fees 4 IT Proceedings - Allowed, being for business or profession

4) Neon sign board - Allowed in the form of depreciation, being a capital asset. 

Thanks Amir once again. you r really very helpful.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details