yusufsahibmaricar
(Office Manager Cum Accountant)
(40 Points)
Replied 20 October 2012
yusufsahibmaricar
(Office Manager Cum Accountant)
(40 Points)
Replied 20 October 2012
yusufsahibmaricar
(Office Manager Cum Accountant)
(40 Points)
Replied 20 October 2012
Milind M. Kulkarni
(Practicing CA)
(580 Points)
Replied 21 October 2012
My understanding is that prior period expenses are not allowed as deduction under Income Tax Act from the current year's profit nor from any of the previous year's profit. They are absolutely and totally disallowed. Would request Abhilasha to please clarify under which section it is mentioned that it will be allowed in revised return of the earlier year.
Aarush
(Delhi)
(1566 Points)
Replied 22 October 2012
Its depands on facts of situations, also there is no specfic sec dealing with prior period items in case of allowable (30 to 37) or disallowable (Sec 40, 40A)
Pl note:-
Section 37 say - (Expensses should pertain to current year) but as fas as for income concerned department is not ready to lose its money, it will subject to tax.
refer attached case law "1" which say prior period expenses are allowable.
Sectio 40 (2)(v) say it will be allowable in current year if its is paid.. numerous of case law exist , Go Google.
For rest cases its "disallowable"
Mohammed Shahid Rahman
(Partner)
(143 Points)
Replied 24 March 2016
Hi
I made a mistake in last years balance sheet (14-15) of my company. Outstanding Municipal Tax expenses which should be written at 5500/- has been written mistakenly as 4500/- I have paid 5500/- Municipal tax this year (15-16). How and where do I recored extra 1000/- I am not from accounts backgound so an example would be very helpful. I m using Tally 9erp.
Thanks
rameshreddy
(accountent)
(21 Points)
Replied 24 August 2016
Hi,
income tax caluculation for corporate companys
nikhil bhudolia
(CA FINAL)
(109 Points)
Replied 16 July 2018
allowed in the year of expense i.e in the Next year like 43B
Shubhank Zanwar
(Student CA Final )
(22 Points)
Replied 27 February 2019
Only if your case is selected for regular assessment.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)