1.This section allows 150%   100% deduction on expenditure inured on skilled development project (New Amendment)

2.This scheme is only for company assessees

3.Expenditure on land or building not covered

4.The skilled development project eligible under this scheme will be specified by board (CBDT) .

Example:-Certain Vocational Traning Institutes

Note:-If deduction claimed under this section then it cannot be claimed in any other section .

EARLIER

NOW

150% Deduction was available on

Direct Expenditure on

Skill Development Project

100% Deduction was available on

Direct Expenditure on

Skill Development Project

 

Questions

Q1

Proft and Loss of Ajay & Co,a proprietorship  
SALES 800000
Less  
EXPENSES 500000
PROFIT 300000

Suppose Expenses Include

Expenditure on Approved Skilled Development Project of Rs 60000

-a-

Deduction not allowed as Ajay& Co is a proprietorship,not a company

Computation of PGBP Income  
Profit as per P& L A/c 300000
Add  
Expense Disallowed  
Expenditure on Approved Skilled Development Project 60000
   
Less  
Expense Allowed  
   
   
PGBP INCOME 360000

-ea-

Q2

Solve last question assuming it is a Company

-a-

In this case,150% deduction will be available.

Computation of PGBP Income  
Profit as per P& L A/c 300000
Add  
Expense Disallowed  
Expenditure on Approved Skilled Development Project 60000
   
Less  
Expense Allowed  
150% Deduction on Approved Skilled Devopment Project 90000
(60000*150%)  
PGBP INCOME 270000
  1. Income Tax
  2. PGBP Income
Ask Download

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 .
Jail