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SALARIES-III, SALARIES-III - Coggle Diagram
SALARIES-III
SALARIES-III
Profit and Gains from
Business / Profession
HEAD BUSINESS OR PROFESSION (SECTION
28)
Section 43(5) defines the expression
“speculative transaction”
Key points for consideration
Method of Accounting [Section 145]
Income earned in cash or in kind
Continution of Business or Profession
Ownership of Business is not necessary for Taxability
Business may be Legal or Illegal
Profit motive is not the sole consideration
for taxability
Computation of income separately for each business
ADMISSIBLE DEDUCTIONS
Rent, rates, repairs and insurance for buildings (Section 30)
Repairs and insurance for Plant & Machinery, Furniture (Section 31)
Depreciation (Section 32)
Investment in new plant or machinery in notified backward areas in certain States (Section 32AD)
Tea/Coffee/Rubber Development Account (Section 33AB)
Site restoration fund [Section 33ABA]
Scientific Research (Section 35)
Amortization of Spectrum fees (Section 35ABA)
Expenditure on telecom licence (Section 35ABB)
Expenditure of capital nature incurred in respect of specified business (Section 35AD)
Expenditure by way of Payment to Associations and Institutions for carrying out Rural Development
Programmes (Section 35CCA)
Expenditure on Agricultural extension project (Section 35CCC)
Expenditure on skill development project (Section 35CCD)
Amortization of Preliminary Expenses (Section 35D)
Amortisation of Expenditure in the case of Voluntary Retirement Scheme (Section 35DDA)
Other Deductions [Section 36]
Other Expenses [Section 37]
Rent, rates, repairs and insurance for buildings (Section 30)
Deduction of expenses on the basis of usage:Section 38 of the Act
Repairs and insurance for Plant & Machinery, Furniture (Section 31)
Depreciation (Section 32)
(a) Classification of Assets:
(b) Ownership v/s lease:
(c) Used for the purpose of Business or Profession:
(d) No deduction on sold assets:
section 43(1).
Written Down Value (WDV) [Section 43(6)]
Actual Cost [Section 43(1)]
Unabsorbed Depreciation
Depreciation on Straight line basis
Terminal depreciation
Balancing Charge [Section 41(2)]
Additional Depreciation [Section 32(1)]
Calculation of Written Down Value of a block of asset [Section 43(6)]
Investment in New Plant or Machinery in Notified Backward Areas in Certain States
(Section 32AD)
Tea/Coffee/Rubber Development Account (Section 33AB)
Site restoration fund [Section 33ABA]
Scientific Research (Section 35)
Amortization of Spectrum Fees for Purchase of Spectrum [New Section 35ABA inserted vide
Finance Act, 2016]
Expenditure of capital nature incurred in respect of specified business (Section 35AD)
AND MANY MORE PLEASE READ BOOK FURTHER