Easy Office
LCI Learning

Preincorporation expenses

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 August 2012 What is the rule for writting off the preliminery/pre-incorporation expenses in the books of a private limited company. Is there any such rule in the compaqnies act or is it done as per the Income Tax act. please explain in detail?
Profile Image

CA Amit Jaiswal

Profile Image

CA Amit Jaiswal (Expert)
20 August 2012 The rule of 20% is for income tax purposes.

For books accounts you would have booked entire amount at the time of expenditure.

Further this will give rise to Deferred Tax.


Best of Luck.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


CCI Pro
Live Budget News and Updates

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links