Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Business Income , Inadmissible deductions
01-14-2005, 09:18 PM,
Business Income , Inadmissible deductions
Can any one tell me what is meant by first three inadmissible deduction written in ITO in the head BUSINESS INCOME !!

The difference between dreams and accomplishment is purly desire
01-15-2005, 01:08 AM,
First of all...the basic thing to understand is for what amounts we can claim deductions...

We can claim deductions only for that expenses which we have incurred for the purposes of business...

The first inadmissible deduction is any tax levied on the profits or gains of the business...example is income cannot claim deduction in respect of the income tax that he has paid...
Its not a business Expense...

The 2nd inadmissible deduction is the amount of income tax deducted at source...againn its not a business Expense...

The 3rd inadmissible deduction is that business expense that we incure wihtout deducting tax at source...
Example...When we pay salaries to our business is a business we can claim deduction in respect of salaries...but we have to pay salaries to our employees after deducting will be inadmissible if we donot deduct tax...
in other words we have to pay salaries net of tax...

01-15-2005, 08:44 PM,
In case of AOPs' (business income), the following amounts are also inadmissible deductions.i.e;
i) Salary;
ii) Brokerage;
iii) Commission;
iv) Interest; or
v) Any other remuneration to the partners of AOP.

«·´`·.(*·.¸(`·.¸ ¸.·´)¸.·*).·´`·»
«.......... A D N A N ..........»
«·´`·.(¸.·*(¸.·´ `·.¸)*·.¸).·´`·»

Forum Jump:

Users browsing this thread: 1 Guest(s)

Contact Us | Accountancy | Return to Top | | Lite (Archive) Mode | RSS Syndication