depreciation allowed or not.... urgent

382 views 2 replies

Paras

Student

28 Points Joined July 2008

A private limited company has only income from agriculture.

This agriculture income is derived as share of income on sale of agriculture produce of a person doing agriculture. the company has no agrigulture land in its name nor has rented or leased land.

Question?

1.Is this income totally tax free in the hands of the company?

2.If so what about the expenses incurred by the company as regards maintainance of the company( audit fees office expenses roc filing fees depreciation of furniture and computors in office etc?

3 can this expenses be claimed against income from agriculture? or are these to be teated as loss during the year as there is no other income.

Replies (2)

The company has to do atleast primany work to show it as agriculture income.It is not nessary that the land has to be in the name of the company.The expenses cannot be claimed anywhere nor they can be treated as loss.The expenses are related to exempt income and cannot be claimed.

prashant goyal

CA-Final

100 Points Joined August 2010

1. Income is tax free it's not necessary to hav land registered in the name of assessee

2. sec 14A no expenses will be allowed for earning exempted income

3. as company has no other activity then agricultural so these expenditure also for earning and maintaing agricultural activity so carry forward is also not allowed