Section 145A of ITA, 1961 : Section 145A: Method Of Accounting In Certain Cases

Explanation using Example

Example of Section 145A of the Income-tax Act, 1961:

Imagine a clothing manufacturer, ABC Textiles, is preparing its financial statements for the year ended March 31st. During the year, ABC Textiles paid various taxes and duties on the raw materials purchased and finished goods sold. As per Section 145A:

• When valuing its inventory of unsold clothes, ABC Textiles must do so at the lower of the actual cost or the net realisable value, consistent with the notified income computation and disclosure standards. *...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.