The document defines key terms related to profits and gains from business and profession under the Income Tax Act. It discusses the charging provisions for income from business and profession and outlines the methods for computing income from business and allowable deductions. It also discusses the provisions for maintenance of accounts, audit requirements, and presumptive taxation schemes for certain businesses where accounts are not maintained.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
Every assessee earning more than the basic exemption are eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilemt of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which are essential for Individuals, HUF and Firms for the purpose of claiming deductions against their total income.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
Every assessee earning more than the basic exemption are eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilemt of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which are essential for Individuals, HUF and Firms for the purpose of claiming deductions against their total income.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
Seminar on direct & indirect taxes - capital gainHARSH JAIN
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CHARGING SECTION 45
CAPITAL ASSETS U/S 2(14)
TRANSFER U/S 2(47)
LONG TERM CAPITAL ASSETS
INDEXATION ON LTCA
SHORT TERM CAPITAL ASSETS
COST OF ACQUISITION
CHARGING SECTION 45
CAPITAL ASSETS U/S 2(14)
TRANSFER U/S 2(47)
LONG TERM CAPITAL ASSETS
INDEXATION ON LTCA
SHORT TERM CAPITAL ASSETS
COST OF ACQUISITION
Differentiating US and Philiipine Bases converted to Economic Zones or Freeport Zones from PEZA designated areas in terms of published Legal and Fiscal Incentives and PHYSICAL ATTRIBUTES.
Crowdfunding – Provide your Investors with Confidence & an Exit Strategy
Alchemy OTC Markets Specialists, LLC Announces -- ALL-INCLUSIVE OTC Markets Direct Public Listing – optional -- $USD 1.0 Million Title III Reg CF Crowdfunding Campaign -- $USD65K
Bruce A. Cosgrove, M.Sc., Managing Director
UTI Long Term Equity Fund (Tax Saving) | Invest in ELSS | UTI Mutual FundRinkuMishra13
UTI Long Term Equity Fund is an Equity Linked Savings Scheme (ELSS) that aims to generate long term capital growth and enables saving taxes. Invest in UTI Long Term Equity Fund now!
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2. DEFINITIONS:-
BUSINESS: SEC.2 (13) ANY TRADE, COMMERCE
OR MANUFACTURE OR CONCERN IN THE
NATURE OF TRADE, COMMERCE OR
MANUFACTURE.
PROFESSION : ALL SUCH HUMAN ACTIVITIES,
WHICH REQUIRE INTELLECTUAL SKILL AND
TECHNICAL EXPERTISE.
VOCATION: IT INCLUDES BOTH BUSINESS AND
PROFESSION AND ANY SUCH ACTIVITY UPON
WHICH A PERSON SPENDS MAJOR PART OF HIS
TIME IN ORDER TO EARN FOR HIS LIVING.
3. CHARGING PROVISION (SEC 28):-
INCOME FROM BUSINESS AND
PROFESSION
COMPENSATION DUE OR RECEIVED
INCOME OF TRADE OR PROFESSIONAL
ASSOCIATIONS
PROFIT ON SALE OF LICENCE
VALUE OF BENEFIT
4. INCOME FROM SPECULATION
INTEREST, SALARY ETC. RECEIVED BY A
PARTNER FROM THE FIRM
ANY SUM RECEIVED UNDER A KEYMAN
INSURANCE POLICY
PROFIT EARN FROM AN ILLEGAL
BUSINESS.
5. COMPUTATION OF INCOME FROM
BUSINESS
NET PROFIT AS PER PROFIT AND LOSS
ACCOUNT
ADD: INADMISSIBLE EXPENSES (MEANS
EXPENSES AND LOSSES DEBITED TO PROFIT
AND LOSS ACCOUNT BUT NOT ALLOWED AS
DEDUCTION)
ADD: INCOMES CHARGEABLE UNDER THIS
HEAD BUT NOT CREDITED TO PROFIT AND
LOSS ACCOOUNT
LESS:EXPENSES ALLOWED BUT NOT DEBITED
TO PROFIT AND LOSS ACCOUNT
LESS: INCOMES FROM OTHER SOURCES BUT
CREDITED TO PROFIT AND LOSS ACCOUNT
7. GENERAL PRINCIPLES TO COMPUTE INCOME FROM
BUSINESS AND PROFESSION:-
EXPENSES ARE RELATED TO THE PREVIOUS
YEAR
EXPENSES ARE RELATED TO BUSINESS OR
PROFESSION
PRINCIPLE OF COMMERCIAL EXPEDIENCY
BUSINESS OR PROFESSION MUST BE CARRIED
DURING THE PREVIOUS YEAR
NO ANTICIPATED LOSSES
INCLUDES ILLEGAL BUSINESS ALSO
NO DEDUCTION FOR PENALTIES FOR BREACH
OF LAW
DEDUCTION RELATED TO TAXABLE PROFITS
ONLY
8. DEDUCTIONS ALLOWED:-
RENT, RATES, REPAIRS AND INSURANCE FOR
BUILDINGS (SEC. 30)
RENT, REPAIRS AND INSURANCE OF
MACHINERY, PLANT AND FURNITURE (SEC.
31)
DEPRECIATION (SEC. 32)
DEPRECIATION IS ALLOWED ON TANGIBLE
AND INTANGIBLE ASSETS BOTH.
ASSETS ARE DIVIDED ON THE BASIS OF
BLOCK OF ASSETS (BUILDINGS, FURNITURE,
PLANT AND MACHINERY AND INTANGIBLE
ASSETS)
9. RATES OF DEPRECIATION:-
BUILDINGS
BLOCK 1: USED FOR RESIDENTIAL PURPOSE - 5%
BLOCK 2: FOR OTHER PURPOSES - 10%
BLOCK 3: TEMPORARY ERECTIONS - 100%
FURNITURE & FITTINGS INCLUDING ELECTRICAL
FITTINGS
- 10%
INTANGIBLE ASSETS INCLUDE KNOW HOW,
PATENTS, COPYRIGHTS, TRADE MARKS,
LICENCES, FRANCHISES ETC. - 25%
10. BLOCK 1: MOTOR CARS - 15%
BLOCK 2: SHIPS, VESSELS, TUGS, BARGES ETC - 20%
BLOCK 3: TAXIS, MOTOR BUSES, MOULDS ETC - 30%
BLOCK 4: AEROPLANES & SPECIFIED LIFE
SAVING MEDICAL EQUIPMENTS - 40%
BLOCK 5: CONTAINERS MADE OF GLASS,
PLASTIC ETC - 50%
BLOCK 6: COMPUTERS INCLUDING SOFTWARE,
BOOKS OTHER THAN ANNUAL
PUBLICATIONS OR USED BY
LIBRARIES - 60%
PLANT & MACHINERY:-
11. BLOCK 7: ROLLERS, ENERGY SAVING DEVICES,
GAS CYLINDERS ETC - 80%
BLOCK 8: WATER TREATMENT SYSTEM,
CINEMATOGRAPH FILMS, MATCH
FACTORIES, SALT WORKS, BOOKS
BEING ANNUAL PUBLICATIONS OR
USED IN THE LIBRARY,
POLLUTION CONTROL
EQUIPMENTS - 100%
12. TEA, COFFEE & RUBBER DEVELOPMENT
ACCOUNT (SEC 33AB)
QUANTUM OF DEDUCTION WILL BE THE
AMOUNT DEPOSITED WITH NABARD IN A
SCHEME APPROVED BY TEA, COFFEE RUBBER
BOARD OR 40% OF THE PROFIT OF SUCH
BUSINESS WHICHEVER IS LESS.
SITE RESTORATION FUND (SEC 33ABA)
QUANTUM OF DEDUCTION WILL BE THE
AMOUNT DEPOSITED WITH SBI IN A SPECIAL
ACCOUNT OR SITE RESTORATION ACCOUNT
OF THE MINISTRY OR 20% OF PROFIT OF
SUCH BUSINESS WHICHEVER IS LESS.
13. EXPENDITURE ON SCIENTIFIC RESEARCH
(SEC 35)
1. QUANTUM OF DEDUCTION IS 100% OF THE
EXPENDITURE IN GENERAL INCLUDING
CAPITAL EXPENDITURE
2. DONATION TO SCIENTIFIC RESEARCH
ASSOCIATIONS, NATIONAL LABORATORY,
UNIVERSITY OR AN IIT ETC - 125%
3. IN HOUSE RESEARCH IN THE AREA OF BIO
TECHNOLOGY, DRUGS, PHARMACEUTICALS,
COMPUTERS ETC - 150%
14. EXPENDITURE FOR OBTAINING LICENCE TO
OPERATE TELECOMMUNICATION SERVICES
(SEC 35ABB)
QUANTUM OF DEDUCTION WILL BE ALLOWED
IN EQUAL INSTALMENTS OVER THE PERIOD
FOR WHICH THE LICENCE REMAIN IN FORCE
SUBJECT TO THE MAXIMUM OF AMOUNT
ACTUALLY PAID.
EXPENDITURE ON ELIGIBLE PROJECTS OR
SCHEMES (SEC 35AC)
QUANTUM OF DEDUCTION WILL BE THE
AMOUNT SPENT ON APPROVED PROJECTS OR
PAID TO AN APPROVED ASSOCIATION DURING
THE PREVIOUS YEAR
15. AMORTIZATION OF EXPENDITURE IN CASE OF
AMALGAMATION OR DEMERGER (SEC 35DD)
IF ANY INDIAN COMPANY INCURS ANY
EXPENDITURE ON OR AFTER 1.4.1999 WHOLLY
OR EXCLUSIVELY FOR THE ABOVE MENTIONED
PURPOSE QUANTUM OF DEDUCTION WILL BE
1/5TH OF SUCH EXPENDITURE FOR 5 YEARS
BEGINNING WITH THE PREVIOUS YEAR IN
WHICH THE AMALGAMATION OR DEMERGER
TAKES PLACE.
16. AMORTIZATION OF EXPENDITURE INCURRED
UNDER VOLUNTARY RETIREMENT SCHEME
(SEC 35DDA)
QUANTUM OF DEDUCTION WILL BE 1/5TH OF
SUCH EXPENDITURE FOR 5 YEARS
AMORTIZATION OF EXPENDITURE ON
PROSPECTING ETC. FOR DEVELOPMENT OF
CERTAIN MINERALS (SEC 35E)
QUANTUM OF DEDUCTION WILL BE 1/10TH OF
SUCH EXPENDITURE FOR FIRST 10 YEARS
17. OTHER DEDUCTIONS (SEC 36):-
INSURANCE PREMIUM OF STOCKS
INSURANCE PREMIUM OF CATTLE
INSURANCE ON HEALTH OF EMPLOYEES
BONUS OR COMMISSION TO EMPLOYEES
INTEREST ON BORROWED CAPITAL
DISCOUNT ON ISSUE OF ZERO COUPON BONDS
TO BE ALLOWED AS DEDUCTION ON PRO RATA
BASIS
EMPLOYERS CONTRIBUTION TO RECOGNIZED/
APPROVED PROVIDENT FUND.
18. EMPLOYER’S CONTRIBUTION TO AN
APPROVED GRATUITY FUND
SUMS RECEIVED FROM EMPLOYEES
TOWARDS CERTAIN WELFARE SCHEMES IF
CREDITED TO THEIR ACCOUNTS BEFORE
THE DUE DATE
LOSS ON ACCOUNT OF DEAD OR USELESS
ANIMALS
ACTUAL BAD DEBTS
REVENUE EXPENDITURE ON PROMOTING
FAMILY PLANNING AMONGST THE
EMPLOYEES BY A COMPANY
19. CAPITAL EXPENDITURE ON PROMOTING
FAMILY PLANNING AMONGST THE
EMPLOYEES (QUANTUM OF DEDUCTION
WILL BE 1/5TH OF SUCH EXPENDITURE FOR 5
YEARS)
BANKING CASH TRANSACTION TAX PAID
20. GENERAL DEDUCTIONS (SEC 37)
REMUNERATION TO EMPLOYEES
PENALTY, DAMAGES ETC. DURING THE COURSE
OF BUSINESS
LEGAL EXPENSES
EXPENDITURE ON RAISING LOANS
EXPENDITURE ON ADVERTISEMENTS
DIWALI AND MAHURAT EXPENDITURE
PAYMENT FOR TELEPHONE CONNECTION
PREMIUM PAID ON LOSS OR PROFIT POLICIES
CONTRIBUTION TO TRADE ASSOCIATIONS
PAYMENT TO REGISTRAR OF COMPANIES
EXPENSES ON TRAINING OF STAFF
CIVIL DEFENCE EXPENSES
INDIRECT TAXES
21. EXPENSES NOT ALLOWED AS
DEDUCTIONS (SEC 37)
EXPENSES IN CONNECTION WITH ISSUE OF
DEBENTURES OR SHARES
ANY CAPITAL EXPENDITURE
BANK GUARANTEE COMMISSION
PUGREE OR PREMIUM PAID TO OBTAIN
TENANCY RIGHT
EXPENDITURE ON SHIFTING OF OFFICE
AMOUNT PAID TO WARD OFF COMPETITION
IN BUSINESS TO A RIVAL
ADVERTISEMENT TO POLITICAL PARTIES
22. DEDUCTION FROM COMMISSION EARNED BY LIC, UTI,
POST OFFICE & MUTUAL FUNDS AGENTS
WHERE COMMISSION EARNED IS LESS THAN RS
60,000
LIC AGENTS - FIRST YEAR COMMISSION 50% OF
THE COMMISSION, SUBSEQUENT YEAR- 15% OF
THE COMMISSION, IF DIFFICULT TO SEPARATE
THE TWO COMMISSIONS THEN 33.33% OF THE
COMMISSION (TO THE MAXMIMUM OF RS 20,000)
OTHER AGENTS - 50% OF THE COMMISSION
WHERE COMMISSION EARNED IS MORE THAN RS
60,000 THEN ASSESSEE SHOULD MAINTAIN THE
NECESSARY RECORDS AND CAN CLAIM
DEDUCTION FROM SEC 30-37
23. EXPENSES NON DEDUCTIBLE (SEC 40)
ANY INTEREST, ROYALTY, FEES ETC PAID
OUTSIDE INDIA WITHOUT DEDUCTION OF
TAX AT SOURCE
INTEREST ON CAPITAL / LOAN TO PARTNERS
IN EXCESS OF 12% P.A
UNREASONABLE EXPENSES TO RELATIVES IF
THE ASSESSEE IS HAVING SUBSTANTIAL
INTEREST
ANY EXPENDITURE EXCEEDING RS. 20,000
OTHERWISE THAN BY AN ACCOUNT PAYEE
CHEQUE
24. SECURITY TRANSACTION TAX
FRINGE BENEFIT TAX
DIRECT TAXES
TAX ON PERQUISITES PAID BY THE
EMPLOYER
CONTRIBUTION TOWARDS NON RECOGNIZED
PROVIDENT FUNDS
25. DEDUCTION ONLY ON ACTUAL PAYMENT
EVEN AFTER 31ST MARCH BUT BEFORE
THE DUE DATE OF FILING THE RETURN
(SEC 43B)
TAXES, DUTY, CESS OR FEE
CONTRIBUTION TO PROVIDENT FUND,
GRATUITY FUND, ETC.
PAYMENT OF BONUS, COMMISSION ETC. TO
EMPLOYEES
26. DEEMED PROFIT (SEC 41)
RECOVERY AGAINST ANY ALLOWANCE OR
DEDUCTION ALLOWED EARLIER
SALE OF CAPITAL ASSETS USED FOR
SCIENTIFIC RESEARCH
RECOVERY OF BAD DEBT
27. MAINTAINENCE OF ACCOUNTS (SEC 44AA)
A PERSON CARRYING ON SPECIFIED
PROFESSION SHALL BE REQUIRED TO
MAINTAIN ACCOUNTS IF HIS GROSS RECEIPTS
IN THREE PRECEDING YEARS EXCEEDS RS
1,50,000 OR IN CASE OF NEW BUSINESS IT IS
LIKELY TO EXCEED RS. 1,50,000 IN THAT
PREVIOUS YEAR
FOR OTHER PERSONS WHERE THE TOTAL
INCOME EXCEEDS RS 1,20,000 OR SALE EXCEEDS
RS 10,00,000 IN ANY OF THE PRECEDING 3
YEARS OR IN CASE OF NEW BUSINESS LIKELY TO
EXCEED THE SAME DURING THE CURRENT
PREVIOUS YEAR
28. COMPULSORY AUDIT OF ACCOUNTS
(SEC 44AB)
IN CASE OF BUSINESS TOTAL SALES OR
GROSS RECEIPTS EXCEEDS RS 40 LAKHS IN
ANY PREVIOUS YEAR OR IN CASE OF
PROFESSION EXCEEDS RS 10 LAKHS IN ANY
PREVIOUS YEAR
29. PRESUMTIVE SYSTEM OF TAX (NO
ACCOUNTS ARE PREPARED)
PROFITS AND GAINS OF BUSINESS OF CIVIL
CONSTRUCTION (SEC 44AD) – DEEMED
PROFIT= 8% OF GROSS RECEIPTS IF THE
RECEIPTS DO NOT EXCEED RS 40 LAKHS
DURING ANY PREVIOUS YEAR
30. PROFITS AND GAINS OF PLYING, HIRING OR
LEASING GOODS CARRIAGES (SEC 44AE) –
IF ASSESSEE OWNS NOT MORE THAN 10
GOODS CARRIAGES DURING THE PREVIOUS
YEAR THEN DEEMED PROFIT WILL BE RS
3,500 EACH VEHICLE FOR EVERY MONTH OR
PART OF A MONTH IN CASE OF HEAVY
VEHICLES AND RS 3,150 EACH VEHICLE FOR
EVERY MONTH OR PART OF A MONTH IN
CASE OF LIGHT VEHICLES
31. PROFITS AND GAINS OF RETAIL BUSINESS (SEC
44AF)- DEEMED INCOME WILL BE 5% OF THE
TOTAL TURNOVER IF TURNOVER DOES NOT
EXCEED RS 40 LAKH DURING THE FINANCIAL
YEAR
PROFITS AND GAINS OF SHIPPING BUSINESS IN
CASE OF NON RESIDENTS (SEC 44B) - DEEMED
INCOME WILL BE 7.5% OF THE FREIGHT
PROFITS AND GAINS OF BUSINESS OF OPERATION
OF AIRCRAFT IN CASE OF NON RESIDENT (SEC
44BBA) - DEEMED INCOME WILL BE 5% OF THE
AMOUNT RECEIVED/ RECEIVABLE