Expenses distribution raito

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2012 Dear Experts Please Tell Me That What % Of Expenses are allowable under I.Tax Act 1961

If We Have a manufacturing Unit and Sale Amount Rs 35,00,000 & Purchase Amt Rs.32,00,000/ Then What amount of expenses are allowable under I Tax Act.1961
For Example
If We have sale of Rs 1,00,000 Then Freight Charges Up to Rs8500/-(8% of Sale Amount Are allowable)

1 Freight
2 Labour Charges
3 Business Promotion
4 Vehicle Running Expenses
5 Staff & Labour welfare
6 Travelling Expensess
7 Postage & telegrams

Pls Reply Me
Emal ID -nk96093@gmail.com

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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07 July 2012 Dear Friend, There is no system of % allowance of expenses in Income Tax Act, 1961. All genuin expenses are allowed in the act.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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07 July 2012 Whatever actual expenses that you can prove will be allowable expenses.

Upto limit of tax audit i.e. 60 lacs for AY12-13 you have to declare profit more than 8%. otherwise you have to conduct audit.

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