19 August 2007
Due to change in ITR many chartered are following practice to disclose interest on housing Loan, Mediclaim,LIC etc... as an expenditure in P/L. When the theatment of these items are diffrent in computation then how its possible?
20 August 2007
Interest on Housing Loan, Mediclaim for the proprietor or partner or his / her family members, LIC premium of Proprietor / Partner is not a business expense and hence should not be shown in Profit and Loss Account at any time. They should be treated as drawings and deducted from capital account. If this proper accounting is done, then there would not be any problems.
20 August 2007
Actually some time professionals do some times matching amount of net profit to income tax payable so they treat like P/L but it should not treat like a P/L according to law.
CAclubindia
