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Why are companies allowed to deduct all expense before calculating income tax, but....

Maharsh Patel (Article assistant) (23 Points)

19 June 2020

Why are companies allowed to deduct all expense before calculating income tax, but individuals not allowed to do the same?

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4 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 19 June 2020

In case of individuals they can also claim all expenses like companies if they file there return for profit or gains from businesses or professional and audit case..

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Jagdish panchal (student) (132 Points)
Replied 20 June 2020

By individual do you mean salary Income or Business.

and also what Type of expense you are talking about. if you can provide with example.

Maharsh Patel (Article assistant) (23 Points)
Replied 20 June 2020

I mean an individual salaried person cannot claim depreciation/ part depreciation on his car which he uses to travel to office while a businessman who has his car under his company's name can claim depreciation.

Why like that?