Goodwill Treatment

[VIGNESH]

Sir. any inputs on treatment of goodwill paid for purchase of business? under income tax act !

1. Can Goodwill paid to acquire business treated as expense?

2. Amortization of amount paid for Goodwill in books possible?

AI Summary

Business Entity Queries Goodwill Treatment in Income Tax: Expense or Not? Opinions Differ on Amortization. A discussion on the treatment of goodwill in the context of income tax law was initiated by a business entity. The query sought clarification on whether goodwill paid for acquiring a business could be treated as an expense and if its amortization in financial books was possible. One respondent opined that goodwill could be treated as an expense but not amortized in the books. Another participant expressed gratitude for the knowledge shared.