PGBP sections

Profits And Gains Of Business Or PRofession

Profits and Gains of Business & Profession

Section 28 – Charging Section
Section 29 – Income from Profits & Gains of Business and Profession, How Computed
Section 30 – Rent, Rates, Taxes, Repairs And Insurance For Buildings
Section 31 – Repairs And Insurance Of Machinery, Plant And Furniture

Depreciation

Section 32(1)(ii) – Depreciation
Section 43(3) – Definition Of “Plant”
Explanation 5 To Section 32(1) – Mandatory To Claim Depreciation
Depreciation In Respect Of Imported Motor Car
No Depreciation Where Actual Cost Allowed As Depreciation Under Section 42
Proviso To Section 32(1) – 50% Depreciation When Asset Is Put To Use For Less Than 180 Days
Explanation 1 To Section 32(1) – Deemed Building
Proviso To Section 32(1) – Depreciation In Case Of Succession, Amalgamation And Demerger
Section 32(1)(iia) – Additional Depreciation
Section 43(6) – Written Down Value
Section 50 – Special Provisions For Computation Of Capital Gains In Case Of Depreciable Assets.
Explanations To Section 43(1) – Determination Of Actual Cost In Special Cases Issue
Section 32(2) – Set-Off And Carry Forward Of Unabsorbed Depreciation

Depreciation For Power Generating Undertakings

Section 32(1)(i) – Depreciation For Power Generating Undertakings
Section 32(1)(iii) – Terminal Depreciation
Section 41(2) – Balancing Charge
Section 50A – Special Provision for Cost Of Acquisition In Case Of Depreciable Asset.

Foreign Exchange Fluctuations

Section 43A – Special Provision Consequential To Changes In Rate Of Exchange Of Currency.
Arvind Mills Ltd. (Supreme Court)
Tax Treatment Of Foreign Exchange Fluctuations
CIT vs. Woodward Governor India (P.) Ltd. (Supreme Court)[2009]

Expenditure On Sceintific Research

Section 35 – Expenditure on Scientific research
Summary of Section 35
Section 35(2AA) – Higher Deduction On Payment Made To Approved Specified Persons For Scientific Research
Section 35(2AB) – Higher Deduction To Companies Which Are Engaged In Business Of Bio Technology Or Manufacture Or Production Of Specified Articles For Conducting In House Scientific Research

Deduction Of Certain Specified Expenses

Section 35A – Expenditure On Acquisition Of Patent Rights Or Copyrights
Section 35ABB – Expenditure For Obtaining Licence To Operate Telecommunication Services
Section 35CCA – Expenditure By Way Of Payment To Associations And Institutions For Carrying Out Rural Development Program
Section 35D – Amortisation Of Certain Preliminary Expenses

Section 35DD – Amortisation Of Amalgamation Or Demerger Expenses
Section 35DDA – Amortisation Of Expenditure Incurred Under Voluntary Retirement Scheme

Section 35AD (Introduced by Finance Act, 2009)

Deduction available to assessee carrying on specified business
Capital Expenditure eligible for deduction
Expenditure incurred prior to the commencement of operations also eligible for deduction
Expenditure not eligible for deduction under section 35AD
Conditions to be satisfied for claiming deduction
Additional condition to be satisfied by assessee Laying Cross Country Pipeline
No deductions allowed under any other provision of the Act
Section 73A – Carry forward and set-off of losses by specified business
Section 28 – Charging Section
section 50B – Slump Sale
Explanation 13 to Section 43(1) – Actual Cost

Taxation of Mining of Coal , Limestone, Iron, Zinc, Gold, etc.

Section 35E – Amortisation of expenditure on prospecting Etc. of certain minerals

Certain Deductions Under Section 36

Section 36(1)(i) – Premium For Insurance Of Stock-In-Trade

Section 36(1)(ib) – Premium For Insurance On Health Of Employees
Section 36(1)(ii) – Bonus Or Commission Paid To Employees
Section 36(1)(iii) – Interest On Borrowed Capital

Section 36(1)(iiia) – Discount On Zero Coupon Bond
Section 36(1)(iv) – Employer’s Contribution Towards Recognised Provident Fund Or An Approved Superannuation Fund
Section 36(1)(v) – Employer’s Contribution Towards Approved Gratuity Fund
Section 36(1)(va) – Employees’ Contribution Towards Recognised Provident Fund Or An Approved Superannuation Fund
Section 36(1)(vi) – Animals Used In Business Otherwise Than AS Stock-In-Trade
SECTION 36(1)(vii) – Bad Debts

Section 41(4) – Bad Debt Recovery

Section 36(1)(ix) – Expenditure On Promotion Of Family Planning
Section 36(1)(xv) – Securities Transaction Tax

Special Provision for Taxation of Banks

Section 36(1)(viia)- Provision for Bad and Doubtful Debts Relating to the Banks
Deduction for Actual Bad Debts

Transfer to Special Reserve Under Section 36(1)(viii)

Section 41(4) – Amount Withdrawn from Special Reserve Account under section 36(10(viii)

General Deduction Under Section 37

Section 37(1) – General Clause For Deductions
Explanation To Section 37(1) – Illegal Payments
Section 37(2B) – Payments Made To Political Party

Amount Specifically Not Deductible Under Section 40

Section 40(a)(i) – Non-Compliance Of Provisions Of TDS Where Payment Is Made To Non-Resident
Section 40(a)(ia) – Non-Compliance Of Provision Of TDS Where Payment Is Made To A Resident
Section 40(a)(ii) – Income Tax
Section 40(a)(iia) – Wealth Tax
Section 40(a) (iii) – TDS On Salary Payable Outside India Or To A Non-Resident
Section 40(a)(iv) – Employer’s Contribution Towards Provident Fund Or Any Other Fund
Section 40(a)(v) – Payment Of Tax On Behalf Of Employee
Section 40(ba) – Payment Of Interest, Salary, Bonus, Commission Or Remuneration Made By AOP/BOI To Its Members
Section 40(b) – Payment Of Interest, Salary, Bonus, Commission Or Remuneration Made By Firm To Its Partners

Expenses Not Deductible Under Certain Circumstances

Section 40A(2) – Payments To Specified Persons Not Deductible Under Certain Circumstances
Section 40A(3)& (3A) – Payments Made Otherwise Than By Account Payee Cheque Or Account Payee Bank Draft

Rule 6DD – Cases And Circumstances In Which Payment In A Sum Exceeding Twenty Thousand Rupees May Be Made Otherwise Than By An Account Payee Cheque Drawn On A Bank Or Account Payee Bank Draft.

Attar Singh Gurmukh Singh (Supreme Court)

Vijay Kumar Ajit Kumar

Section 40A(4) – Payments Made By Account Payee Cheque In Voilation Of A Contarct
Section 40A(7) – Employer’s Contribution To Gratuity Fund
Section 40A(9) – Employer’s Contribution To Approved Gratuity Fund, Recognized Provident Fund Or Approved Superannuation Fund

Certain Deductions On Actual Payment Basis

Section 43B – Certain Deductions On Actual Payment Basis
Circular No. 7/2006, Dated 17-07-2006
Employees' Contribution To Provident Fund, Superannuation Fund And Other Funds For The Welfare Of Employees.
Section 2(24) clause (x)
Section 36(1)(va)
Employer's Contribution To Provident Fund, Superannuation Fund And Other Funds For The Welfare Of Employees.
Exception To Section 43B

Recovery Of Expenditure & Remission And Cessation Of Trading Liability

Section 41(1) – Recovery Of Expenditure & REMISSION And Cessation Of Trading Liability
Principles Governing Remission Or Cessation Of Trading Liabilities

Remission Can Take Place By Unilateral Act

Time Barred Liabilities Not Written Off

§ M. R. Dhawan

Time Barred Liabilities Written Off

Section 41(1) Applies To Trading Liabilities Only

§ J.K. Synthetics Ltd. (SC) – Remission Takes Place When Matter Is Finally Decided

Polyflex India (P) Ltd. V. CIT [2002] 124 Taxman 373 (SC)

Employer’s Contribution To Provident Fund, Superannuation Fund, Gratuity Fund And Other Funds

EMPLOYER'S CONTRIBUTION TO GRATUITY FUND

Section 36(1)(v) – Employer’s Contribution Towards Approved Gratuity Fund

Section 40(a)(iv) – Employer’s Contribution Towards Provident Fund Or Any Other Fund

Section 40A(7) – Employer’s Contribution To Gratuity Fund

Section 40A(9) – Employer’s Contribution To Approved Gratuity Fund, Recognized Provident Fund Or Approved Superannuation Fund

Section 43B – Certain Deduction On Actual Payment Basis

EMPLOYER'S CONTRIBUTION TO PROVIDENT FUND AND OTHER WELFARE FUNDS

Section 36(1)(iv) – Employer’s Contribution Towards Recognised Provident Fund Or An Approved Superannuation Fund

Section 40(a)(iv) – Employer’s Contribution Towards Provident Fund Or Any Other Fund

Section 40A(9) – Employer’s Contribution To Approved Gratuity Fund, Recognized Provident Fund Or Approved Superannuation Fund

Section 43B – Certain Deduction On Actual Payment Basis

Income From Manufacture Of Tea, Coffee And Rubber

Section 33AB – Tea Development Account, Coffee Development Account And Rubber Development Account
Rule 7A – Income From The Manufacture Of Rubber
Rule 7B – Income From The Manufacture Of Coffee
Rule 8 – Income From Manufacture Of Tea
CIT v. Mahavir Plantations Ltd. [2004] 269 ITR 552 (Ker.)

Miscellaneous Issues

Section 14A – Expenditure Incurred In Relation To Income Not Includible In Total Income
Rule 8D: Method of Determining Amount of Expenditure in Relation to Income Not Includible in Total Income
Section 33ABA – Site Restoration Fund
Section 43D – Interest Income On Bad And Doubtful Debts
Section 68 – Cash Credit
Section 69 – Unexplained Investments
Section 69A – Unexplained Money, Etc.
Section 69B – Amount of Investments, Etc., Not Fully Disclosed in the Books of Account
Section 69C – Unexplained Expenditure
Section 69D – Amount Borrowed or Repaid on Hundi
Section 269SS – Mode of Taking or Accepting Certain Loans And Deposits
Section 269T – Mode of Repayment of Certain Loans or Deposits
Section 271D – Penalty For Failure to Comply With the Provisions of Section 269SS
Section 271E – Penalty For Failure to Comply With the Provisions of Section 269T
Section 44AA – Maintenance of Accounts by Certain Persons Carrying on Profession or Business
Section 271A – Penalty For Failure to Keep or Maintain Books of Accounts, Documents, Etc.

Presumptive Taxation

Section 44B – Special Provision For Computing Profits And Gains Of Shipping Business In Case Of A Non-Resident.
Section 172 – Shipping Business Of Non-Residents
Section 44BBA – Special Provision For Computing Profits And Gains Of Business Of Operation Of Aircraft In Case Of A Non-Resident.
Section 44BBB – Special Provision For Computing Profits And Gains Of Foreign Companies Engaged In The Business Of Civil Construction Etc. In Certain Turnkey Power Projects.
Section 42 – Special Provision in Case of Assessees in the Business of Prospecting or Extraction or Production of Mineral Oil.
Section 293A – Power to Make Exemption, etc. in Relation to Participation in the Business of Prospecting for Extraction, etc, of Mineral Oil.
Section 44BB – Special Provision For Computing Profits & Gains In Connection With Business Of Exploration, Etc. Of Mineral Oils In Case Of Non-Residents.
Section 33AC – Reserves for Shipping Business
Section 44AD – Special Provision For Computing Profits And Gains Of Business Of Civil Construction Etc.
Section 44AE – Special Provision For Computing Profits And Gains Of Business Of Plying, Hiring Or Leasing Goods Carriages
Section 44AF – Special Provisions For Computing Profits And Gains Of Retail Business

Fema Forms - Forms on Details of Remittances, Currency Declaration form, Issue of Shares, FTD Statement, Trade Credits and more...
Excise Forms - GAR Challan, Form A-1, A-2, A-3, Declaration FORM, Personal Ledger Account, Form ER – 7 and more...
Partnership Form - Model Partnership Deed , Modifying the Partnership Deed, Admitting New Partner, Retirement Deed, Forms required for Formation / Dissolution and Change in Constitution of Partnership Firm and more...
Wealth Tax Forms - Return of Net Wealth, Warrant of authorisation under section 37A, Report of valuation of forests,Statement of Valuation of jewellery, Report of valuation of works of art and more...
Service Tax Forms- Service Tax Payment Challan, Application for registration Service Tax Return, Application for Advance Ruling, Application for Permission to file ST3 Returns Electronically, Memorandum for provisional Deposit & more...
Income Tax Forms - Declaration to be filed by the assessee claiming deduction under section 80GG , Claim for refund of tax, Challan form for depositing Income Tax, New amended Form No. 27D - TCS certificate and more...
ITR Forms - ITR 1, 2, 3, 4, 5, 6, 7, 8, 9, Income Tax Return Utility , Income Tax Return Word Format, Income Tax Return more...