Claiming of prepaid expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 Hi

One of our client owns wine shop he has paid license fee in the month of june2010 that is license fee is for full year from june2010 to next may2011. My query is whether we can claim full fee as expenditure for the year in which it is actually paid that is for the FY 2010-11 only. If yes please could you tell me under which section of incoem tax act.

Thanks in advance

CA Parul Saxena

CA Parul Saxena (Expert)
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10 July 2013 Fee is to be bifurcated into 2 portion:-
From June 2010 to march 2011-Expenses
From march 2011 to may 2011-Prepaid expenses
now it would be clear to you that fee from june 2010 to march 2011 only can be claimed.