PGBP PRESENTATION.pptx

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.

1. PGBP- Profit and Gains from Business and Profession

2. SEC-28 CHARGING SECTION TRADE / PROFESSIONAL ASSOCIATION INCOME DUTY DRAWBACK SALE OF LICENSE CASH ASSISTANCE SCHEME PROFIT AND GAIN FROM BUSINESS & PROFESSION REFRAINING FEES

3. SEC – 32 DEPRECIATION DEPRECIATION IS MANDATORY TERMINAL DEPRECIATION ALLOWED AS EXPENDITURE AND BALANCING CHARGE IS TAXABLE. CONDITIONS FOR CLAIMING DEPRECIATION Used for the purposes of business or profession Asset must be used during the previous year Assessee must be owner of the asset

4. TWO METHODS OF DEPRECIATION STRAIGHT LINE METHOD ONLY POWER GENERATING COMPANY AND POWER GENERATING AND DISTRIBUTION COMPANY CAN USE THIS METHOD DEPRECIATION IS CALCULATED ASSETWISE WRITTEN DOWN VALUE ALL OTHER COMPANIES ARE MANDATORY REQUIRED TO USE WDV METHOD DEPRECIATION CALCULATED BLOCKWISE (Asset with same rate of depreciation in same block )

5. SECTION- 33AB

6. SEC-35 SCIENTIFIC RESEARCH DEDUCTION ALLOWED BY GOVT FOR PROMOTING MORE AND MORE RESEARCH AND INNOVATION DONATION TO NATIONAL LABORATORY DONATION TO COMPANIES DONATIONS TO APPROVED INSTITUTIONS LIKE IIM , IIT ETC 100% DEDUCTION CERTIFICATE 10BD 10BE REQUIRED

7. B

8. Expenditure for obtaining right to use spectrum for telecommunication services Deduction for capital expenditure incurred for acquiring rights to use spectrum telecommunication services and actually paid by the assesse either before or after commencement of business. SECTION-35AB

9. SECTION-35ABB Expenditure for obtaining license to operate telecommunication services Where any capital expenditure being rights to operate telecommunication service is incurred any actually paidby the assesse either before or after commencement of business , deduction on such expenditure p.a. is allowed as follows.

10. SECTION – 36 GENERAL DEDUCTION

11. SECTION 40A – EXPENSES NOT DEDUCTIBLE sum paid on account of wealth-tax sum paid on account of tax levied on the profits or gains sum paid on account of fringe benefit tax AMOUNT ON WHICH TDS NOT PAID DISALLOWED UPTO 30% SALARY PAYABLE OUTSIDE INDIA AND TAX HAS NOT BEEN PAID THEREON SALARY PAYABLE TO NON RESIDENT AND TAX HAS NOT BEEN PAID THEREON

12. SECTION – 40B REMUNERATION TO PARTNER

13. CALCULATION OF BOOK PROFIT Profit as per Profit & Loss a/c –        XA ADD Remuneration to partners if debited to Profit and loss a/c Y ADD Brought forward business loss, deduction under  section 80C to 80U if debited to profit and loss a/c Z LESS Income under house property, capital gain, other sources if credited to profit and loss a/c A = Book Profits      XYZ

14. SECTION – 40B INTEREST ON PARTNERS CAPITAL

15. SECTION – 43B DEDUCTIONS ONLY ON ACTUAL PAYMENTS

16. SECTION – 44AB TAX AUDIT NOT APPLICABLE TO PERSON OPTING PRESUMPTIVE INCOME SCHEME

17. SECTION – 44AD PRESUMPTIVE SCHEME FOR BUSINESS CAN FILE ITR4 SHORTER AND SIMPLER THAN ITR3 PAY 100% ADVANCE TAX BY 15 TH MARCH OF PREVIOUS YEAR

18. SECTION – 44ADA PRESUMPTIVE SCHEME FOR SPECIFIED PROFESSION

19. Thanks for watching