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Pgbp effects

Khushbu (Student) (203 Points)

11 January 2015

Hello Plzzz explain me what does Allowance & disallowance means?!? What are the effect of same?!? Thanks

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Naman (looking for job) (38 Points)
Replied 11 January 2015

Allowance means that any expendture (also Loss) is allowed to be reduced from the Profit while computing Taxable profit ( Sec 30 to 38) Whereas Disallowance means that it will increase the profit by that amount if u have claimed it as expenditure and debited in the profit and loss account. ( Sec 40 and 40A deal with disallowance)