Professional expenses for raising capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Hi,
What is the provision regarding professional expenses incurred in raising capital for a private company? -Whether it has to be deferred or has to be treated as a normal expense or to be capitalized ?

Thanks & Regards
Azeez

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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03 July 2013 If you follow Accounting Standards, then there is no requirement to defer any expenditure which does not qualify for recognition as 'Asset'.
If you do not follow AS, then you may do whatever you like, from taxation point of view, check section 35D of Income Tax.