HELLO FRIENDS, CAN ANYBODY TELL ME, CAN A PARTNERSHIP FIRM TAKES THE DEDUCTION OF INCOME TAX PAID IN P/L A/C.
IF NO WHETHER PROVISION IS ALLOWED.
PLS. HELP ME.
THANKS.
4 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 23 August 2012
Dear Raj,
Only the expenses that are wholly & esclusively incurred for the purpose of the business is only allowed as an deduction while calculating the income from business.
Income-tax is not incurred for the purpose of business, hence it is disallowed if it is debited to P&L A/c. Provision is also not allowed.
deepak
(Job)
(69 Points)
Replied 24 August 2012
Any type of direct taxes (Income Tax & Wealth Tax ) not allowed as expenditure .....reffer to section 40(ii) of the income tax act, 1961....
deepak
(Job)
(69 Points)
Replied 24 August 2012
it is irrelevant whether assessee is a firm, individual or company or any body else......direct taxes not allowed for all assessees......
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