Hi friends,
Is there anywhere in Section 35D of the Income Tax Act, it is mentioned that the preliminary expenses are allowable only to the extent of Rs.5000/- allowable in equal amounts (Rs.1000) for five years?
If so, please tell me exactly where...
Thank you...
Hi,
U/s 35D of Income Tax Act, there is no restriction as to restrict the amount of preliminary expenses allowed is upto Rs.5000/-. However the amount of preliminary expense cannot exceed 5% of cost of project or Capital employed in case of Indian Companies or 5% of cost of project for resident non-corporate assessee.
thanks,
Ashok
CAclubindia
