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THE QUESTION PUT BY YOU IS NOT CLEAR. THE PAYMENT OF RS.1.00 LACS IS ON WHAT ACCOUNT. SUPPOSE A DEPOSIT OF RS.1.00 AS SECURITY IS GIVEN, IT IS REIMBURSABEL AT THE END OF THE LEASE PERIOD ON GIVING THE POSSESSION OF THE BUILDING TO THE LAND LORD. IT IS NECESSARY TO ASCERTAIN THE NATURE OF THE PAYMENT. SUPPOSE IT IS LEASE RENT FOR 5 YEARS, PAID IN ADVANCE, THEN EVERY YEAR 1/5TH OF THE AMOUNT CAN BE CHARGED TO PROFIT AND LOSS ACCOUNT AND THE BALANCE HAS TO BE SHOWN AS PREPAID EXPENSES. THESE EXPENSES WILL BE AN ALLOWABLE EXPENSE UNDER THE INCOME TAX ACT, 1961. THERE IS NO RULE OF THUMB ALL DEPENDS ON THE NATURE OF THE PAYMENT.
DEEPAK THUKRAL
CHANDIGARH
From India , Chandigarh
DEEPAK THUKRAL
CHANDIGARH
From India , Chandigarh
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#Listed In: profit and loss direct expenses profit and loss account income tax act City-India-Gurgaon Country-India
Personal-Budget -Income-and-Exp enses-for-Full- Calendar-Year.x ls
