Income From Business

INADMISSIBLE EXPENSES

1.       The following expenses have been declared as inadmissible expenses
2.       Donation to approved/unapproved institutions
3.       Charity to unapproved institutions
4.       Litigations expenses to acquire the title of capital asset
5.       Legal Expenses (criminal prosecution against employee)
6.       Initial Expenses
7.       Cost of issue of shares
8.       Cost of issue of Debentures
9.       Fines and penalties
10.   Provision/Reserve for bad debts
11.   Bad debts recovered
12.   Bad debts not recognized
13.   Income tax paid
14.   Accounting Depreciation
15.   Income not recorded in books
16.   Travelling expenses not verified
17.   Advertisement cost of new signboard
18.   Loss of embezzlement after working hours
19.   Administration expenses for Expansion of plant
20.   cess, rate or tax levied on profits or as proportion of profits
21.   Any personal expenditure
22.   Liquidated damages
23.   Provision for taxation
24.   Tax deducted at source
25.   Provision for gratuity
26.   Brokerage
27.   Commission
28.   Any payment of a fine or penalty for the violation of any law or rule or regulation. 
29.   Cost of software
30.   Salaries paid without deduction of tax
31.   Interest, salary etc. paid to members of an association
32.   Any contribution to un-recognized provident fund
33.   Any contribution to unapproved pension
34.   Any contribution to superannuation
35.   Any contribution to gratuity funds
36.   Any allowance in respect expenditure on entertainment
37.   Any amount carried to a revenue fund or capitalized in any way.
38.   Any capital expenditure. However, depreciation or amortization shall be allowed in respect of a depreciable asset, intangible or pre-commencement expenditure.

EXEMPTIONS UNDER BUSINESS INCOME
1.       Amortization of initial expenses @ 20%
2.       Premium on issue of debentures
3.       Premium on issue of debentures
4.       Allowable depreciation
5.       Bad debts not allowed
6.       Expenditure on scientific research not recorded
7.       Capital gain on sale of shares of private company
8.       Dividend (under FTR @ 10%)
9.       Profit on government securities (net) (under FTR @ 10%)
10.   Brokerage and commission (under FTR @ 12%)
11.   Income from speculative transactions
12.   Income from property
13.   Interest on deposit
14.   Miscellaneous Receipts
15.   Income tax refund

Comments

Post a Comment

Popular posts from this blog

ALZHEIMER

ALZHEIMER’S DISEASE Alzheimer’s disease is progressive degenerative disorder that attacks the brain nerve cells or neurons resulting in loss memory thinking and language skills and behavioral changes Alzheimer’s disease is the most common form of dementia causes progressive decline in memory and other aspect of cognition. SYMPTOM ·          Changes associated with old age ·          such as retirement ·          loss of spouse ·          declining physical health ·          feelings of worthlessness ·          and dependency put these people at risk of developing  Alzheimer depression and other mental health problems ALZHEIMER’S DISEASE WORLDWIDE Alzheimer’s affects 47 million people worldwide and this number will triple by...
Read more

Inadmissible Expenses under Income Tax law

Inadmissible Expenses   The following expenses have been declared as  inadmissible expenses   in Income from business under Income Tax law: 1.       Donation to approved/unapproved institutions 2.       Charity to unapproved institutions 3.       Litigations expenses to acquire the title of capital asset 4.       Legal Expenses (criminal prosecution against employee) 5.       Initial Expenses 6.       Cost of issue of shares 7.       Cost of issue of Debentures 8.       Fines and penalties 9.       Provision/Reserve for bad debts 10.   Bad debts recovered 11.   Bad debts not recognized 12.   Income tax paid 13.   Accounting Depreciation 14.   Income not recorded in books 15.   Travelling e...
Read more