by Audit Analyst | Jan 2, 2026 | Corporate Tax
Eligibility of R&D Expenses Research and Development (R&D) expenses are deductible under the Income-tax Act, 1961. Deduction is available to companies engaged in scientific research related to their business. Both revenue and capital expenditures on R&D...
by Audit Analyst | Jan 2, 2026 | Corporate Tax
Definition of Preliminary Expenses Preliminary expenses are costs incurred before the commencement of business or incorporation. These include expenses related to company formation, feasibility reports, legal charges, and project reports. Such expenses are capital in...
by Audit Analyst | Jan 2, 2026 | Corporate Tax
Definition of Fair Market Value (FMV) Fair Market Value refers to the price that an asset would fetch in an open market. It is determined between willing buyer and seller, both acting at arm’s length. FMV represents a realistic valuation of property or shares. It is...
by Audit Analyst | Jan 2, 2026 | Corporate Tax
Meaning of Slump Sale A slump sale involves the transfer of one or more undertakings as a going concern. It is transferred for a lump sum consideration without assigning individual values to assets and liabilities. Defined under section 2(42C) of the Income-tax Act,...
by Audit Analyst | Jan 2, 2026 | Corporate Tax
Definition and Recognition of Amalgamation Amalgamation refers to the merger of one or more companies into another company. It must meet the definition under section 2(1B) of the Income-tax Act, 1961. All assets and liabilities of the amalgamating company must be...
