Allowance or disaalowance of prior period expenses

This query is : Resolved

Dhiraj kumar (Querist)
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12 August 2013 Dear Sir,
I want to know that whether prior period expenses are allowed or disallowed under Income TAx Act,1961.

Please also tell me section under which its treatment is provided.

Regards
Dhiraj Kumar

CA Vijeta Verma

CA Vijeta Verma (Expert)
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12 August 2013 yes allowed under PGBP under section 35D in 5 equal instalments subject to the condition that total expenditure should not exceed 5% cost of project( for other assessesee) or capital employed or cost of project for Indian company.Excess ignored.