PGBP (Profit and Gains of Business or Profession)
Learn computation of PGBP - Income Tax
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What You Will Learn!
- Profit and Gains of Business or Profession u/s 28 - 44
- Income taxable under the head Profits and Gains of Business or Profession Section 28
- Admissible Deductions
- 1. Allowed business losses.
- 2. Expenses or deductions expressly allowed.
- 3. Expenses or deductions allowed on the basis of general commercial principles.
- Expenses Expressly Disallowed
- Rate of Depreciation
- Computation of Income from Business
- Profit & Loss Account
- Explanation of above items
- Presumptive Income Section 44AD
- Computation of Income from Profession
- Explanation of above items
Description
Profit and Gains of Business or Profession u/s 28 - 44
Income taxable under the head Profits and Gains of Business or Profession Section 28
Admissible Deductions :
I. Allowed business losses.
1. Loss of Trading Goods.
2. Loss on Accounts of Forfeiture of Advances.
3. Loss on Account of Guarantee in Trade.
4. Loss due to carelessness coercion, theft, embezzlement by employee.
5. Loss due to dacoits.
6. Theft of cash from safe.
7. Loss of trade stock and goods on foreign aliens attack.
8. Loss on sale-purchase of securities.
9. Loss on account of fluctuations in exchange rates
10. Loss on terminations of contract.
11. Loss in transit of raw material or furnished goods.
12. Loss on forfeiture of security deposited
II. Expenses or deductions expressly allowed :
1. Expenses relating to building – U/S 30
2. Expenses of machine, furniture and plant – U/S 31
3. Depreciation and allowable allowance – U/S 32
4. Tea development account, Coffee development account and Rubber development account – U/S 33AB
5. Deduction regarding deposit in site restoration fund – U/S 33ABA
6. Expenditure on scientific research – U/S 35
7. Expenses incurred in acquiring patent rights and copyrights – U/S 35A
8. Expenses on acquiring technical know-how – U/S 35AB
9. Expenditure for obtaining rights to use spectrum for TeleCommunication services - U/S 35ABA
10. Capital expenditure to obtain license to operate Tele-Communication services – U/S 35ABB
11. Deduction in respect of Expenditure on specified business – U/S 35AD
12. Deduction of payment in rural development fund - U/S 35CCA
13. Expenditure incurred on agricultural extension project - U/S 35CCC
14. Expenditure incurred on any skill development project – U/S 35CCD
15. Deduction in respect of preliminary expenses – U/S 35D
16. Amortization of expenditure in case of amalgamation or demerger – U/S 35DD
17. Amortization of expenditure under voluntary retirement scheme – U/S 35DDA
18. Expenses on the discovery of minerals – U/S 35E
19. Other deductions – U/S 36
III. Expenses or deductions allowed on the basis of general commercial principles :
1. These deductions should not be of expenses mentioned in section 30 to 36.
2. These expenses should be related with the trade operated by the assessee and the profit must be taxable.
3. They should not be personal or domestic expenses of assessee.
4. Payment of these expense must be in relation to business or profession fully.
5. These expenses should not be of capital nature.
6. These expenses should be paid in the previous year.
7. These expenses should not be paid for such object which are prohibited by any law or are in connection with any crime
Expenses Expressly Disallowed
Rate of Depreciation
Computation of Income from Business
Profit & Loss Account
Explanation of above items
Profession
Computation of Income from Profession
Explanation of above items
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
