[Ask The Tax Whiz] Clarifications on tax compliance for lease accounting 

In filing my Income Tax Return (ITR), is there a difference between how I report rent expenses in my financial reports and what I need to pay in taxes?

Yes, there is a difference between how you report your rent expenses in the financial report and how it translates to tax obligations. For lease, you generally report the total rent paid as an expense in your financial statements, which can reduce your taxable income.

With a conditional sale, you’re not just reporting an expense; you’re recording an asset and a liability...