Professional Income

1. Profits and Gains of Business or Profession
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100

2. Dr. NGPASC
COIMBATORE | INDIA
Business
Definition: “Any trade,
commerce, manufacture or any
adventure or concern in the
nature of trade, commerce and
manufacture”
Economic
activity
carried on
for earning
profits

3. Dr. NGPASC
COIMBATORE | INDIA
Profession
Section
2(36)
Lawyer, Doctor,
Accountant,
Engineer, Surgeon,
author etc.,
It is an occupation requiring
purely intellectual skill or
manual skill controlled by
the intellectual skill of the
operator.

4. Dr. NGPASC
COIMBATORE | INDIA
Doctor or
Medical
Practitioner

5. Dr. NGPASC
COIMBATORE | INDIA

6. Dr. NGPASC
COIMBATORE | INDIA

7. Dr. NGPASC
COIMBATORE | INDIA
Chartered
Accountant

8. Dr. NGPASC
COIMBATORE | INDIA

9. Dr. NGPASC
COIMBATORE | INDIA

10. Dr. NGPASC
COIMBATORE | INDIA
Lawyer or an
Advocate

11. Dr. NGPASC
COIMBATORE | INDIA

12. Dr. NGPASC
COIMBATORE | INDIA

13. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Visiting fees 45000
Consultation fees 125000
Sale of Medicines 72000 242000

14. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Dispensary rent 36000
Electricity and water charges (6000-2500) 3500
Telephone expenses (6000*60%) 3600
Salary of staff 36000
Depreciation on surgical equipment 6000
Cost of medicines (6000+36000-4000) 38000
Depreciation on X-ray machine 4000
Motor car expenses (9600-4800) 4800
Depreciation on car (4800-2400) 2400 134300
Professional Gain 107700

15. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Visiting fees 45000
Consultation fees 125000
Sale of Medicines 72000 242000
Less: Professional Expenses
Dispensary rent 36000
Electricity and water charges (6000-2500) 3500
Telephone expenses (6000*60%) 3600
Salary of staff 36000
Depreciation on surgical equipment 6000
Cost of medicines (6000+36000-4000) 38000
Depreciation on X-ray machine 4000
Motor car expenses (9600-4800) 4800
Depreciation on car (4800-2400) 2400 134300
Professional Gain 107700

16. Dr. NGPASC
COIMBATORE | INDIA

17. Dr. NGPASC
COIMBATORE | INDIA

18. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Audit fees 224000
Financial Consultation works 98000
Accountancy works 24000 346000

19. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Office rent 42000
Telephone installation charges 15000
Electricity bill 4200
Salary of staff 66000
Car expenses (21000*70%) 14700
Subscription for journal 2500
Institute fees 1200
Stipends to trainees 12000
Depreciation 3500 161100
Professional Gain 184900

20. Dr. NGPASC
COIMBATORE | INDIA

21. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipt
Consultation fees 10000
Visiting fees 20000 30000

22. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Depreciation on car 30000*15/100 4500
Salaries 8000
Establishment expenses 1000
Depreciation on surgical equipment 4000*15/100 600
Depreciation on book 2000*40/100 800 14900
Professional Gain 15100

23. Dr. NGPASC
COIMBATORE | INDIA

24. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Consultation fees 60000
Visiting fees 45000
Gifts and presents 5000
Sale of medicine 42000 152000

25. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Rent of clinic 18000
Cost of medical expenses 38000
Staff salaries 24000
Depreciation on surgical equipment's 40000*15/100 6000
Motor Car expenses (8000*50%) 4000
Depreciation on Motor car
(140000*15/100=21000) (21000*1/2=10500)
(10500*50%=5250)
5250 96250
Professional Gain 56750

26. Dr. NGPASC
COIMBATORE | INDIA

27. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Legal fees 84400
Gift from clients 10000-2000 8000 92400

28. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Rent 2400
Telephone 3000
Salaries 2400
Subscription to law journal 240
Travelling 560
Office expenses 600
Purchase of stamp court fees Stamp 1600 10800
Professional Gain 81600

29. Dr. NGPASC
COIMBATORE | INDIA

30. Dr. NGPASC
COIMBATORE | INDIA

31. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Consultation fees 20000
Visiting fees 30000
Sale of medicine 60000
Gift & presents 3000
Remuneration from journal 6000 119000

32. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Rent of clinic 6000
Electricity & water bill 2000
Purchase of profession book 4000*40/100 1600
Depreciation on Motor car 30000*15/100 3000
Depreciation on Surgical equipment 4800*15/100 720
Salary to staff 15000
Interest on loan for profession 2000
Car expenses 15000*2/3 10000
Purchase of medicine 40000 80320
Professional Gain 38680

33. Dr. NGPASC
COIMBATORE | INDIA

34. Dr. NGPASC
COIMBATORE | INDIA

35. Dr. NGPASC
COIMBATORE | INDIA
Computation of Professional Income
Particulars ₹ ₹
Professional Receipts
Consultation fees 9000
Visiting fees 15000
Sale of medicine 13500
Gift from patients 4000 41500

36. Dr. NGPASC
COIMBATORE | INDIA
Particulars ₹ ₹
Less: Professional Expenses
Rent of clinic 3000
Cost of medicine 6000
Subscription to medical magazines 100
Depreciation on Motor car 30000*15/100*2/3 3000
Depreciation on Surgical equipment 900*15/100 135
Salary to compounder 2000
Car expenses 2000 16235
Professional Gain 25265

37. 37