Accounting treatment in income tax

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..... Accounting treatment in income tax
Query (Issue) Started By: - vijayasathya raman Dated:- 27-7-2009 Last Reply Date:- 28-7-2009 Income Tax
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Income Tax
Dear Friends,My client is .....

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..... lawyer deling in Registration & Documentaion of the real estate transactions for various campanies.In this connections he left with no option but to pay ( Tips !! & others!!)to the Govt Officials.How .....

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..... to account in the books of accounts.Is it Admissible under the Income Tax Act.Kindly Clarify Reply By DEV KUMAR KOTHARI: The Reply: The government would do well to officially permit such payments an .....

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..... d allow weighted deduction for the same and curtail salary of governemtn employees. Many would work even without pay. But as per law such payements are against public policy, illegal, and not allowab .....

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..... le. If some one claim such expenses, he may be caught but he officer to whom tips, speed money, or gifts or in blunt terms bribe will not be affected for want of evidence. Off course if one want to c .....

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..... lean system, he can try to keep evidence to establish demand from officers and payment to him and then perhaps a strong case can be made out for allowability of expenses as a loss incidental to busine .....

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..... ss or profession.
Discussion Forum - Knowledge Sharing .....

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