Dear Murali, Thanks for asking. Regarding the accounting treatment of interior design, only those expenditure which increases the future benefits of an asset from its previously assessed standard of performance can be added to cost of the asset(AS10). In this case of rented property ,the same is not regarded as fixed asset and also the expenditure on interior design does not qualify as capital expenditure. The same needs to be charged to profit and loss account.

"Yes and No". Interest on TDS is compensatory in nature and is a claimable expense under section 37 of income tax act. However, late fine is a penalty the same cannot be claimed as an expesne. refer the case law "Dcit,Circle-3(11), Kolkata, ... vs M/S Narayani Ispat Pvt. Ltd., ... on 30 August, 2017"

Thanks for the answer.

What if the bank account of the firm is still open with zero balance and the recovered amount is credited in the firm's bank account? Under which head of income the same will be taxable? The PAN is surrendered by the firm. 😶