Income Under Head PGBP Section 28 to Section 44

Income Under Head PGBP Section 28 to Section 44

Income arise during the normal course of business or profession are chargeable to Income under head Profit and Gain from Business Profession.

Following things need to be taken care

Section 30:                   Rent, Rates, Taxes, Repairs and Insurance For Buildings

Section 31:                 Repairs and Insurance of Machinery, Plant and Furniture

Section 32(1):             Depreciation & Depreciation for Power Generating Undertakings

Section 50:                 Special Provisions for Computation of Capital Gains in Case of depreciable Assets

Section 32(2):             Set-Off and Carry Forward of Unabsorbed Depreciation

Section 43A:                Foreign Exchange Fluctuations

Section 35A:                Expenditure on Scientific Research & Certain Specified Expense   

Section 35AD              (Introduced by Finance Act, 2009)

Section 36:                  Certain Deductions (Note I ) 

Section 37:                  General Deduction 

Section 40(a):              Amount Specifically Not Deductible

Section 40A:                Expenses Not Deductible Under Certain Circumstances

Section 43B:                Certain Deductions on Actual Payment Basis

Note I:

Section 36(1)(i) – Premium for Insurance of Stock-In-Trade

Section 36(1)(ib) – Premium for Insurance on Health of Employees

Section 36(1)(ii) – Bonus or Commission Paid to Employees

Section 36(1)(iii) – Interest on Borrowed Capital

Section 36(1)(iiia) –  Discount on Zero Coupon Bond

Section 36(1)(iv) – Employer’s Contribution Towards Recognised Provident Fund or An Approved Superannuation Fund

Section 36(1)(v) – Employer’s Contribution Towards Approved Gratuity Fund 

Section 36(1)(va) – Employees’ Contribution Towards Recognised Provident Fund or An Approved Superannuation Fund

Section 36(1)(vi) – Animals Used in Business Otherwise Than AS Stock-In-Trade 

Section 36(1)(vii) – Bad Debts   

Section 41(4) – Bad Debt Recovery Section 36(1)(ix) – Expenditure on Promotion of Family Planning