Goodwill and tax treatement

[kamranACA]

Dear,

There are certain charges/expenses which are accounted for using generally accepted accounting principles but are not allowed for deduction against various incomes (vice versa). Therefore, that rule is for preparation of accounts and not for claiming the expenses as deductions in all cases. These are two different things and cannot be mingled up.

However, in my view, section 23 provides admissibility for amortization of good will as a deduction against business income subject to conditions of time period of 10 years as explained in my earlier post.

Regards,


KAMRAN.