Profits and Gains of Business or Profession

Save Share

This query is : Resolved

Sreekumar Narayanan (Querist)
Follow

06 December 2010
Whether direct expenses i.e. expenses incurred to earn that income such as purchase cost of materials, wages, other direct expenses are deductable u/s 37

OR

the income referred to in sec.28 is after deducting all Direct Expenses.

Please clarify.

Thanks in advance.

With regards

Sreekumar.N

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

06 December 2010 Direct expenses i.e. expenses incurred to earn that income such as purchase cost of materials, wages, other direct expenses are deductable u/s 37. Expenses which are covered U/s 30-36 are claimed in the respective Sections.

Business Income as defined in Section 28 will be after deducting both direct as well as indirect business expenditures.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now