INCOME TAX · COMPLIANCE AND COMMON MISTAKES
Disallowed Company Expenses: Why Book Profit and Taxable Profit Differ
Check personal expenses, cash payments, TDS failures, MSME dues and other common tax adjustments.
By Vyapar Setu Online | Compliance and common mistakes · 28 October 2026
Business Income Tax series · Compliance and common mistakes · Article 25 of 27
An expense entered in the profit-and-loss account is not automatically deductible for income tax. A useful tax computation explains each difference between accounting profit and taxable profit.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
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