What are the expenses that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be deducted from the profit ? a) Taxable Earnings B) Tax Exempt Earnings NS) Disallowable expenses D) Commercial Profit TO) Legally Accepted Expenses
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What are the expenses that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be deducted from the profit ? |
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Solution :
What are the expenses that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be deducted from the profit ?
Concept :
While calculating the taxable income (tax base ) , the expenses which are disallowable are not deducted from the profit . there are various expenses which are not allowed under the income tax act . example of such expenses are expenses of personal nature ,penalties paid etc . such expenses shall not be taken into consideration while calculating taxable income (tax base ). These expenses however are allowed while calculating accounting income
Correct option is
Disallowable expenses .
From the above explanation , we know that expenses which are disallowable are not taken into account in the determination of the financial profit (tax base)
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