Profits and Gains from Business or Profession

i think all of them are deductible expenses...as they all are related to business ....

Answers according to ur questions

1.If that machine is purchased for which director has gone for tour then its a admissable expense otherwise its not admissable.

2.Its admissable because giving interest to the bank have a valid proff and has been taken for a valid cause i.e for giving dividend.

3.yes it is admissable because u have given tax to the government so no question of doubt.

4.since it is for the assesse business so no doubt ,and it will be admissable

I assumed all these expenses directly or indirectly are related to profit and gains from business or profession,i may be wrong lets wait for other answers...

i like to answe the question no.(d): that payment relates to advertisement of the products of the assessee and the advertisement is a business expenditure and that should be allowed under the income tax. If not specifically allowed under any section then it can be allowed under section 36 of the act. thanks

agree with Ankur

except (C) all expenses are allowed, 

if C has any payment towards incometax by way of payment of tax / interest / penalties - then this is to be added in profit calculation to the extent of actual payment basis. if the payment is not made direct to incometax but paid to legal / professional charges then allowed. 

These are the answers

1. the expenditure incurred for tour to USA is to be added to the cost of the asset and is not allowable as deduction.

2. dividend is a business expense and interest paid for overdraft is allowable expense.

3. expense is incurred in connection with income tax proceedings. it is not a fine or penalty or tax. hence it is also allowable expense

4. regarding neon signs, it is purely advertisement and it is allowable as a business expense. bt there is a case law regagarding the same issue which i cannot recollect as of now. it is better to refer to the particular case law for the same issue.

hi 

Travelling expenses of  has to be added to cost of  asset because it is a related expenditure for acquiring the asset and is incidental for bringing the machinery into present condition and location and if the asset is not purchased then it is disallowed as it is in the nature of personal expenditure.

Dividend is not an allowable expenditure and the interest for the payment of dividend overdraft is not allowable as deduction because we take PBT for calculating taxable income under this head.

Any payment in relation to Income Tax is not allowable as deduction.

Advertisement expenditure is allowable as expenditure.