Expenses incurred during 1st year of business (no income in this year) are not treated as Preoperative Expenses (debited to expenses head) but treated as business Loss and this loss is carry forward to next year. Is it right or required to be change.
Preoperative expenses will be amortized for next 5 years, is it compulsory in Income Tax laws or this can be treated as expenses in 1st year and Loss will be carry forward for next year (as done as per above).
CAclubindia
