Following things should be added to 'Net Profit as per books'
- Depreciation as per BOOKS
- Income tax in BOOKS (including duty, cesses, late fee, or any other payments related to income tax liability)
- 30% sum payable to residents on which TDS is not deducted
- 100% sum payable to non-residents on which TDS is not deducted
- Unreasonable or excessive expenditure by way or goods or service or otherwise to related person
- Expenditure of more than Rs. 10,000 paid in a single day in cash or any otherwise than A/c Payee Cheque or ECS (electronic clearance system) of banks
- Personal Expenses if charged to P/L
- Capital Expenses (including repairs of capital nature) if charged to P/L
- Amortized preliminary expenditure if amortized in P/L
- Fine or penalty paid to any legal authority for infringement or contravention of any law charged to P/L
- Assessee's contribution to it's employee's Pension Scheme in excess to 10% of his salary
- Bad debts allowed as deduction in Previous financial years now RECOVERED
- Cessation of a trading Liability
- Bonus or commission payable to employee
- Interest on loan taken from PFI (public financial institution) or SFC (state finance corporation) or SIIC (state industrial investment corporation)
- Interest on loan taken from SB (scheduled bank) CB (co-operative bank) other than agricultural bank or RRBs
- Any sum payable to Indian Railways charged as expense in P/L
Following things should be deducted from 'Net Profit as per books'
- Depreciation computed as per Income Tax Law (including additional depreciation)
- Agricultural Income (exempt as per Income Tax Law)
- Dividend/Interest/Income from Lottery or any income chargeable to any other heads other than PGBP charged to P/L
- Income tax refund (including it's interest)
- Deductions under section 35 (scientific research)
- Capital expenditure u/s 35AD (specified business)
(Lists are inclusive and not exhaustive, there may be more additions or deductions)
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