Sir, my question is , whether any compensation paid to employee on order of court due to accident of employee during the course of employment is allowable business expenditure or not ? Also if assesse have debited the compensation paid in P&L A/c, whether we should mention this item of expenditure in the Tax Audit report, if yes in which clause ?
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Income tax
Replies (5)
It should be allowed as an busines expenditure as it doesn't voilate any of section 30 to section 37 of Income Tax Act. I dont think, tax audit report requires any clause for separate disclosure of this type of transactions.
Thanks and Regards,
Manoj B. Gavali
It is allowable expenditure.
You can fall this exp under em
You can fall this exp under em
Yes it is allowable expenditure.
You can fall this exp under employees benefit a/c.
You don not need to separately mentioned in tax audit report.
You can fall this exp under employees benefit a/c.
You don not need to separately mentioned in tax audit report.
Thanku Sir. :)
Thanku Sir. :)
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