https://www.taxtmi.com/article/detailed?id=12658 Reasonable accounting estimates, including provisions for customer guarantees and warranties, are recognised under company and tax law and are allowable to determine taxable income when they reflect accrued or matched liabilities; excess amounts cease to be deductions and are treated as income when the liability no longer exists. Tax authorities should not arbitrarily disallow bona fide provisions, and courts have reaffirmed that reasonable estimated warranty liabilities are deductible subject to statutory exceptions. en-us Sat, 01 Jun 2024 12:52:29 +0530 Sat, 01 Jun 2024 12:52:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12658 Reasonable accounting estimates, including provisions for customer guarantees and warranties, are recognised under company and tax law and are allowable to determine taxable income when they reflect accrued or matched liabilities; excess amounts cease to be deductions and are treated as income when the liability no longer exists. Tax authorities should not arbitrarily disallow bona fide provisions, and courts have reaffirmed that reasonable estimated warranty liabilities are deductible subject to statutory exceptions. Articles Income Tax Sat, 01 Jun 2024 12:52:29 +0530 https://www.taxtmi.com/article/detailed?id=12658