Tax computation/corporate tax

Hi

Can someone give me examples of disallowable and allowable expenses for income tax purposes?

Where can I find that list?

Txs

Replies (10)
Quick Summary
This discussion clarifies allowable and disallowable expenses for income tax purposes, referencing specific sections of tax law. It highlights that while depreciation and capital expenditure are generally allowed, certain expenses like those paid in cash or statutory dues beyond deadlines are disallowable. The conversation also touches upon deferred tax liabilities arising from timing differences, such as TDS payments and the distinction between book depreciation and tax depreciation.

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
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

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

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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