Expenses allow or disallow

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Life is a Race.....CA FINAL (Querist)
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06 May 2010 Respected experts,

I found following expenses on the debit side of P & L A/C of a Pvt. Ltd. co. for F.Y. 2009-10:

1.House Rent Allowance
2.Prior year professional Tax of co.
3.Medical Reimbursement of Directors
4.Penalty charges

Whether it will be allowed as allowable expenses or not while computing computation of income as per B & P?

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kartik_somu

kartik_somu (Expert)
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06 May 2010 1. house rent allowance will be allowed as a deduction.
2. professional tax payments will be covered by sec 43 B and will also be allowed on payment basis
3. medical reimbursement of directors will also be allowed. Amount in excess of Rs. 15000 will be taxed as salary in the hands of director
4. penalty charges will be disallowed u/s 37