Income From business

Income From business

INADMISSIBLE EXPENSES:
The following expenses have been declared as inadmissible expenses
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 expenses not verified
16.   Advertisement cost of new signboard
17.   Loss of embezzlement after working hours
18.   Administration expenses for Expansion of plant
19.   cess, rate or tax levied on profits or as proportion of profits
20.   Any personal expenditure
21.   Liquidated damages
22.   Provision for taxation
23.   Tax deducted at source
24.   Provision for gratuity
25.   Brokerage
26.   Commission
27.   Any payment of a fine or penalty for the violation of any law or rule or regulation. 
28.   Cost of software
29.   Salaries paid without deduction of tax
30.   Interest, salary etc. paid to members of an association
31.   Any contribution to un-recognized provident fund
32.   Any contribution to unapproved pension
33.   Any contribution to superannuation
34.   Any contribution to gratuity funds
35.   Any allowance in respect expenditure on entertainment
36.   Any amount carried to a revenue fund or capitalized in any way.
37.   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

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 re...
Read more

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