We know that Profit or loss is calculated as follows
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
- Any Business (Any shop/factory etc)
- 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|
Lets study expenses first which are also called Deductions