1.If assessee pays any amount to
(a)National fund for Rural Development
(Set up by Central Govt)
(b) National Urban Poverty Eradication Fund
then deduction allowed under this section .
Note:
Direct expenditure on rural development not covered .
If deduction claimed under this section then it cannot be claimed in any other section .
If approval for instituition is withdrawn,still deduction shall be available to assessee
QUESTIONS
Q1
| Proft and Loss of Ajay & Co,a proprietorship | |
| SALES | 900000 |
| Less | |
| EXPENSES | 800000 |
| PROFIT | 100000 |
| Suppose Expenses Include following expenses on Rural Development | |
| Direct Expenditure by Assessee | 50000 |
| Donation to National Fund for Rural Development | 40000 |
| Donation to National Urban Poverty Eradication Fund | 20000 |
| Total | 110000 |
Compute PGBP Income
View Answer| Computation of PGBP Income | |
| Profit as per P& L A/c | 100000 |
| Add | |
| Expense Disallowed | |
| Direct Expenditure by Assessee | 50000 |
| Less | |
| Expense Allowed | |
| PGBP INCOME | 150000 |
Direct Expenditure is disllowed for all.
Q2
Solve last question assuming it is a company?
-a-
Answer same as last.
Direct Expenditure is disllowed even for companies
-ea-
