Core concepts
- 01Income from business/profession — net of admissible expenditure (Sec 30-37).
- 02Sec 30-32: rent, repairs, depreciation on block of assets.
- 03Sec 35-35AD: scientific research, specified business deductions.
- 04Sec 36: bad debts, insurance, employee contributions.
- 05Sec 37: general — any expense wholly & exclusively for business if not capital/personal.
Flowchart summary
PGBP Computation | Net Profit per P&L | +-- Add: disallowed expenses (Sec 40, 40A, 43B) +-- Less: incomes credited but exempt / other heads +-- Add: incomes chargeable not credited +-- Allow: depreciation (Sec 32) | = PGBP Income
Exam-critical pointers
- ⭐Sec 44AD presumptive: 8%/6% of turnover, turnover ≤ ₹3 crore (FY 2024-25 enhancement if cash ≤5%).
- ⭐Sec 44ADA professionals: 50% of receipts, limit ₹75 lakh (enhanced).
- ⭐Sec 43B(h): payment to MSME beyond agreed period (max 45 days) — disallowance until paid.
- ⭐Sec 35AD: 100% deduction on capex of specified businesses (cold chain, warehousing, fertiliser).
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