A. Nature of Expenditure: If an assessee incurs any expenditure in respect of which payment in excess of Rs.35, 000 in case of payment for plying, hiring or leasing goods carriages and Rs. 20,000 in any other case, is made otherwise than by an account payee cheque or an account payee bank draft, 100% of […]
Read MoreNature of expenditure disallowed: Interest, salary, bonus, commission, remuneration paid by an AOP/BOI to its members is not allowed as deduction in computation of income of AOP/BOI. If the AOP/BOI receives as well as pays interest to its members during the previous year, then the excess interest paid over and above the interest received shall […]
Read MoreApplicability: The assessee should be an Indian Company. Deduction: Expenditure incurred for the purpose of amalgamation or de-merger will be allowed as a deduction in 5 equal installments commencing from the previous year in which amalgamation or de-merger took place. Such expenditure will not be allowed as deduction under any other provisions of the Act. […]
Read MoreThe term “block of assets” means a group of assets falling within a class of assets, comprising- Tangible assets, being buildings, machinery, plant or furniture, Intangible assets, being know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature, In respect of which the same percentage of depreciation is prescribed. […]
Read Moreprovision for gratuity in the books of accounts shall not be allowed as a deduction unless- The provision is made for any contribution towards an approved gratuity fund, or The provision is for gratuity, which has become due and payable during the previous year. Payment to any unrecognized welfare fund (Section 40A (9)) : Any […]
Read MoreApplicability: Any assessee carrying on business of prospecting or extraction or production of mineral oil. Condition: The Government of India or any person authorized by it should have entered into an agreement with such an assessee and the same is duly approved by the parliament. Admissible expenditure: Allowance specified in the agreement in relation to- […]
Read MoreApplicability: The assessee has acquired any capital asset from abroad for the purpose of his business or profession. The purchase of capital asset is on credit or on deferred payment or on loan in foreign currency. Adjustment: If there is an increase or reduction in liability at the time of making payment- Towards the whole […]
Read MoreProcedure for computation of income of a firm having income chargeable u/s 44AD/AE/AF Step 1: Compute presumptive income u/s 44AD/AE/AF. Step 2: Deduct interest allowable u/s 40(b) Step 3: Book Profit = Step1 Less Step2 Step 4: Compute allowable remuneration u/s 40(b) Step 5: Income of the firm = Step 3 Less Step 4 Presumptive […]
Read MoreA. Nature of expenses Any sum payable by an employer by way of contribution to PF or superannuation fund or other fund for the welfare of the employees Tax, Duty, Cess or any fee payable Bonus or commission payable to employees Interest payable on loan or borrowing from a public financial institution or interest on […]
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