Preliminary Expenses Written off

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  1. Boopathiraja P

    Boopathiraja P New Member


    I have doubt about to how to presentation of preliminary expenses incurred & DTA or DTL.
    Ex. 1

    I incorporated a Private Ltd Company incurred Rs.25250/- including all expenses related to incorporation.
    can i written off wholly in 1st year whether business commenced or not (AS 26).

    then 500000/- is cost of capital employed so. 5% of that is 25000/-
    Eligible U/s. 35D is Rs.25000/- can written of over the 5 years of period.

    in Statement of Total income

    NET Loss As per P&L - 25250/-

    + Preliminary exp w/off +25250/-
    (-) Preliminary exp u/s 35D-1st year -5000/-
    Total Income -5000.00
    Kindly give me correct picture about the same.
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