Treatment of pre-incorporation of expenses

How do we treat Pre-incorporation expenses such as Legal charges for formation of LLP, Drafting LLP agreement, getting some registrations post incorporation but prior to start of business such as Import Eport Code, VAT etc to ensure smooth flow of business?

Pls do explain me the difference in the treatment as per Income Tax Act and Companies Act, 2013.

Replies (2)
As per companies act you can show full pre incorporation expenses in Starting year but as per income tax you can claim only 1/5th of total pre incorporation expenses up to 5 years.

Will there be any change if the expenses are related to Pre-operation expenses?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
FOLLOW
US ON