Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.
Profits and Gains of Business or Profession [Section 28 to 44D]
1. [Section 28]- List of Incomes Chargeable to Income-Tax The following incomes shall be chargeable to income-tax under the head “Profits and gains of business or profession”: (i) the profits and gains of any business which was carried on by the assessee at any time during the previous year; (ii) any compensation or …
Incomes Chargeable to Tax under Profits and Gains of Business or Profession Read More »
1. [Section 30]- Rent, Rates, Taxes, Repairs and Insurance for Buildings – for computing Profit & Gains of Business or Profession Deductions In respect of rent, rates, taxes, repairs and insurance for premises, used for the purposes of the business or profession, the following deductions shall be allowed: (a) where the premises are occupied …
Notwithstanding anything contained in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head profits and gains of business or profession. (1) [Section 40(a)]- Amounts Not Deductible – In the case of any assessee (i) Any interest, royalty, fees for technical services, or other sum …
Rule 6DD prescribes the following Cases or Circumstances in which payment in excess of Rs. 10,000 may be made otherwise than by an Account Payee Cheque or Demand Draft. So no Disallowance will be made of the Expenditure even if the payment exceeding Rs. 10,000 otherwise than by an Account Payee Cheque or Demand Draft. …
Rule 6DD – Exception to the [Section 40A(3)(a)] Payment in excess of Rs. 10,000 Read More »
In respect of certain following expenditure/ payments, the deduction is allowed only if the amount has been actually paid during the previous year. 1. Any sum payable by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force. 2. Any sum payable by …
[Section 43B]- Certain Deductions to be Allowed only on Actual Payment Read More »
1. “Buildings” – Block of Assets with Rate of Depreciation Block 1 Buildings which are used mainly for residential purposes except hotels and boarding houses 5% Block 2 Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below 10% Block 3 (i) Buildings for installing machinery …
Sl. No. Situation Notional Actual Cost 1. Asset used in business after it ceases to be used for Scientific Research Actual cost of the asset minus the amount of deduction allowed u/s 35 i.e. it will be ‘Nil’ 2. A capital asset referred to section 28(via) (i.e. inventory is converted into/or treated as capital asset) …
Where in the assessment of the assessee, full effect cannot be given to any depreciation allowance in any previous year owing to— (a) there being no profits or gains chargeable for that previous year. or (b) the profits or gains chargeable being less than the depreciation allowance, then, subject to the provisions of …
[Section 32(2)]- Carry Forward and Set Off of Unabsorbed Depreciation Read More »
By virtue of section 41, the following receipts are chargeable to tax as business income notwithstanding that the business or profession to which the receipts relate ceased to be in existence in the year in which they are received: 1. [Section 41(1)]- Recovery against any allowance or deduction allowed earlier – chargeable to Tax …
Deemed Profits chargeable to Tax as Business Income [Section 41 and 176(3A) & (4)] Read More »
1. [Section 44AA(1)]- A Person carrying on certain Professions: Every person, carrying on legal medical, engineering or architectural profession, or profession of accountancy or interior decoration or any other profession as is notified by the Board in the Official Gazette is compulsorily required to keep and maintain such books of account and documents as …