Hi
Can someone give me examples of disallowable and allowable expenses for income tax purposes?
Where can I find that list?
Txs
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Tax computation/corporate tax
Replies (10)
Sec 30 to Sec 40 of Inxome from business and Profession.
If Expenses without payment, Payments by cash , payment of statutory dues beyond due dates etc
They are disallowances and depreciation+ capital expenditure are tax allowed expenses then.
Please check the following link...
https://incometaxindia.gov.in/hindi/Documents/Students/Learning/Disallowance%20of%20Business%20Expenditure-theory.pdf
https://incometaxindia.gov.in/hindi/Documents/Students/Learning/Disallowance%20of%20Business%20Expenditure-theory.pdf
The sections which I hv mentioned is an exhaustive one.
@ Yasaswi,
Depreciation as per books ( Companies act ) will be disallowed in Tax computation and Depreciation as per Income Tax act is allowed
Depreciation as per books ( Companies act ) will be disallowed in Tax computation and Depreciation as per Income Tax act is allowed
Nice to learn this bit to learn corporate taxation. And now the difference between these two is deferred liability.
There are two ways you can learn from if you are interested
Deferred Tax arises not only because of depreciation but also due to timing differences like few expenses are allowed only if tds payment is done on time , statutory dues allowed only in the year of payment,
adjustment of previous year disallowances on actual payment in the current FY etc
adjustment of previous year disallowances on actual payment in the current FY etc
Assets ca >tax base or liabilities ca < tax base = deferred tax liability eg depreciatiin
Assets ca < tax base or Liabilities ca > tax base = deferred tax assets eg intragroup sales
Now I've learnt deferred tax liability arises due to non tds payments.
Hope income taxes standard is same for indas and as
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