Tax Ready Reckoner

Notwithstanding anything contained in sections 30 to 38, the following amounts shall not be deducted under section 40(a), 40(b), 40(ba) in  computing the income chargeable under the head profits and gains of business or profession. 1.  Disallowance In the case of any assessee [Section 40(a)] (i)         Any interest, royalty, fees for technical services, or […]

The provisions, which are being discussed under various sub-sections of section 40A have overriding effect  over the provisions of any other section, because section 40A(1) clearly states that the provision of section 40A  shall have effect notwithstanding anything to the contrary contained in any other provisions of the Act. Therefore  any expenditure or allowance, though

Under Section 43B, some of the Expenses are allowed and can be claimed by the Assessee only in the year in which the payment is actually made for computing income under the head Business and Profession. Notwithstanding anything contained in any other provisions of Income-tax Act, in respect of certain  expenditure/ payments, the deduction is

Income referred to in Section 68, 69A, 69B, 69C and 69D which are undisclosed income and Investments Taxed as Deemed Income of Business and Profession. 1.  Cash credits [Section 68]: Where any sum is found credited in the books of an assessee, maintained  for any previous year, and the assessee offers no explanation about the

What are the Deemed Profits and how they chargeable to Tax as Business Income 1. Recovery against any Allowance or Deduction Allowed earlier [(Section 4 1(1)] (A) Recovery by the same assessee (Section 41(1)(a)1: Where an allowance or deduction has been made in the assessment for any year in respect of (i) loss, (ii) expenditure

As per Section 44AA and Rule 6F, persons carrying on Business and Professions specified below are mandatorily required to maintain their books of accounts. 1.  Person carrying on certain professions [Section 44AA(1)]: Every person, carrying on legal medical,  engineering or architectural profession, or profession of accountancy or interior decoration or any other profession  as is

Following Business are required to get their Accounts compulsory Tax Audited by a Chartered Accountant under Section 44AB for computing Profits and Gain of Business and Profession. 1. Following Business required to get their Accounts Compulsory Audited by CA under Section 44AB (1) Person carrying on business to get his accounts audited if his total

Special Provisions for computing Business income in certain cases on the basis of Estimated Income Method under Section 44AD, 44ADA, 44AE has been described with examples. 1.  Special Provisions for computing profits and gains of Any Business [Section 44AD] (excluding the business covered under Section 44AE) (1) Eligible assessee engaged in an eligible business allowed