We know that Profit or loss is calculated as follows


Particulars Amt
Income 100000
Expenses 60000
Profit 40000


Particulars Amt
Income 100000
Expenses 110000
Loss -10000

This profit/loss is taxable under PGBP Income

PGBP Income means "Profits and Gains of Business or Profession"

Hence, It includes profits and loss of

  1. Any Business (Any shop/factory etc)
  2. Any profession (Service sector like Doctor/Advocate etc)


How to Compute

We need to study both Income and Expenses to understand PGBP Income.

All types of Business Incomes are Covered under PGBP Income
Certain other incomes are also taxed as PGBP which we will learn in Section 28 later.


Expenses are Covered from Section 29-43B


Particulars Amt Sections to be studied
Income xx All Incomes+ Section 28 Incomes
Expenses xx Expense Allowed as per Section 29-43B
Profit xx PGBP Income


  Lets study expenses first which are also called Deductions




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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.