Preliminary Expenses are those expenses that are incurred before starting up an establishment for business or extending a running business or starting up a new unit. Eligible Deduction/Expenditure Under Income Tax Act, Preliminary Expenditure is considered an expenditure of a capital nature and allowed as a deduction during Five Equal Years, provided the assessee is a: COMPANY: A Company must be an Indian Company. Others(Individual, AOP, etc):- Others (eg- Individual, AOP, Firm, etc.) must be a resident in India being an ordinary resident or not an ordinary resident. https://ajsh.in/amortization-of-preliminary-expense/