This Section Covers only following 2 Expenses 


1.Current Repairs of 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 Premium for Safety of  Plant and Machinery or Furniture  




Particulars Amt
Income 850000
Expenses 300000
Profit 550000

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

View Answer

Indirect Method


Indirect Method  
Profit 550000
Expense disallowed  
Capital Expenditure 100000
Expense Allowed  
Depreciation on machine 15000
PGBP Income 635000


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.