Allowability of some expenses under PGBP

This query is : Resolved

Sourav (Querist)
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09 November 2010 Could you please tell me if the following expenditure can be allowable under the head Profit and gains from business and profession and if not then please give the reasons....

(a) Expenses incurred on partly convertible debentures
(b) Expenditure incurred on MS Office software

taxindiaconnect

taxindiaconnect (Expert)
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10 November 2010 a) the expenditure on issuance of partly convertible debentures are deductible in full in the year of incurrance as the debentures at the time of issue are noting but a loan. So any expenditure incurred at the time of raising loan is covered under the definition of interest, hence deductible.

b) For the first time purchase of MS office software along with the hardware it is to be capitalised, while any renewal of license is to be charged off to P & L accounts and also deductible for Tax purpose.