<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=539359806247306&ev=PageView&noscript=1"/>

This Section Covers only following 2 Expenses 

 

1.Current Repairsof Plant and Machinery or Furniture

They should be Current Repairs

If they are in nature of Capital Expenditure,then not allowed as deduction.

Instead Depreciation available u/s 32

 

2. .Insurance Premiumfor Safety of Plant and Machinery or Furniture 

 

 

Q1

ParticularsAmt
Income850000
Expenses300000
Profit550000

Suppose Expenses Include Repair and Maintenance Expense of 100000 which were actually Capital expenses on Increasing efficiency of machine

Depreciation on Machine is 15%

Calculate PGBP Income

-a-

Direct Method 
Income850000

less

Expenses Allowed except Dep

 

200000

(300000-100000) 
Dep on Machine15000
(100000*15%) 
Profit635000

-ea-

Indirect Method

-a-

Indirect Method 
Profit550000
Add 
Expense disallowed 
Capital Expenditure100000
Expense Allowed 
Depreciation on machine15000
PGBP Income635000

-ea-

 

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
Didn't understand? Ask your question or doubt free.

Apna sawal puchiye!

Jail