Goodwill- Incometax

[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

Goodwill treatment under income tax: whether purchase cost is deductible as expense or amortisable for tax purposes. Whether payment for Goodwill to acquire a business is an immediately allowable tax expense or a capital outlay, and whether amortisation of that payment in the taxpayer's books is permissible for income tax purposes, focusing on expenditure characterisation and permissibility of spreading the cost by amortisation.