Table Showing How to Compute “Profits and Gains of Business and Profession” ((As per Sections 28 to 44D)

PARTICULARS	AMOUNT (₹)	REMARKS
Gross Receipts (Sales/Fees)	XXX	Total business income
Less: Cost of Goods Sold (COGS)	(XXX)	Direct expenses for goods sold
Gross Profit	XXX	Gross Receipts – COGS
Add: Other Business Income	XXX	Interest, commission, export incentives, etc.
Less: Allowable Expenses		Deductible under Sections 30-37
– Rent, repairs, insurance	(XXX)	[Section 30]
– Salaries, bonuses, PF/ESI	(XXX)	[Section 36(1)(ii)]
– Interest on business loans	(XXX)	[Section 36(1)(iii)]
– Depreciation	(XXX)	[Section 32]
– Advertisement, legal fees	(XXX)	[Section 37]
– Bad debts (written off)	(XXX)	[Section 36(1)(vii)]
Total Deductions	(XXX)	Sum of all allowable expenses
Net Profit Before Adjustments	XXX	Gross Profit + Other Income – Deductions
Add: Disallowed Expenses	XXX	Non-deductible per Sections 40-44D
– Personal expenses	XXX	[Section 37 disallowance]
– Cash payments > ₹10,000/day	XXX	[Section 40A(3)]
– Unpaid statutory dues (TDS, PF)	XXX	[Section 43B]
– Penalties/fines	XXX	[Section 37(1)]
Taxable Business Income	XXX	Net Profit + Disallowed Expenses
Less: Presumptive Taxation (if opted)	(XXX)	[Section 44AD/44ADA/44AE]
Final Taxable Income	XXX	Taxable as per applicable slab rates

Key Notes:

Depreciation Rates:
- Buildings: 5-10% | Machinery: 15-40% | Computers: 40%.
Presumptive Taxation:
- Section 44AD (Business):6% (digital) / 8% (cash) of turnover.
- Section 44ADA (Professionals):50% of gross receipts.
Loss Carry Forward:Business losses can be carried forward for 8 years.
MAT (Section 115JB):Applicable if tax < 18.5% of book profit.