Deccan Ltd. incurred an amount of ₹ 16 lakh as preliminary expenses for setting up a project costing ₹ 100 Lakhs during financial year 2019-20. The amount of deduction available as amortization of the preliminary expenses during the A.Y. 2020- 21 would be:
A. ₹ 1,60,000
B. ₹ 3,20,000
C. ₹ 16,00,000
D. ₹ 1,00,000
Answer:D
Deccan Ltd. incurred an amount of ₹ 16 lakh as preliminary expenses for setting up a project costing ₹ 100 Lakhs during financial year 2019-20. The amount of deduction available as amortization of the preliminary expenses during the A.Y. 2020- 21 would be:
A. ₹ 1,60,000 B. ₹ 3,20,000 C. ₹ 16,00,000 D. ₹ 1,00,000