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Repairs and insurance for Machinery, plant and furniture - 31

Repairs and insurance for Machinery, plant and furniture - 31 Usage of asset Ø   Used for assessee's own business Ø   Usage includes both active and passive use Ø   Not allowable on discarded but owned assets Ø   Even owned for part of year, full amount is allowable Ø   Repairs exclude replacement or reconstruction Ø   Only current year expenses are allowed under this section Ø   Repairs of capital nature are not allowed Insurance premium Ø   Insurance must be against risk of damage Ø   Assets must be used for his business or profession Ø   Premium shall be actually paid or payable Ø   Premium paid to trade association which takes indemnity is allowable, even if part of contribution is returnable Ø   It is irrelevant whether Insurance claim belong to someone else
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Rent, rates, repairs and insurance for buildings - 30

Rent, rates, repairs and insurance for buildings - 30 In respect of buildings used for the purposes of business or profession tenant Ø   Rent paid, Ø   Cost of repairs, if assessee has undertaken to bear such expenses Sub-let Ø   Difference between rent paid and rent recovered is allowable Ø   Rent paid is allowable Occupied as owner Ø   No notional rent is allowed. Ø   Used for firm - rent paid to partner is allowable (40(b)) Repairs of premises Allowable to: Ø   Owner Ø   Tenant under taken to bear the cost Ø   Otherwise than owner or tenant, i.e.., lessee, licensee or mortgage with possession Ø   Repairs of capital nature are not allowed Other expenses Ø   Land revenue, local rates, municipal taxes and insurance Ø   Cesses, rates and taxes levied by foreign govt. Partly for business Ø   propo...
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Computation of income from Business - 29

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Computation of income from Business - 29 Compute business income in accordance with Sections 30 - 43D 30-36 Specific allowances and deductions 37 Residuary section 40 Inadmissible deductions 40A Expenses or payments not deductible under certain circumstances 41 Profits chargeable to tax
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Speculative Business (Exp 2 to 28)

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Speculative Business Introduction:- Ø   Exp 2 to Section 28 says that, speculation business of an assessee should be deemed as Separate & Distinct Ø   Section 73 provide that, losses from Speculative Business shall be set off against Profits from speculative business only Ø   Speculative business loss can be carried forward up to 8 Years Meaning:- Ø   Speculative transaction Ø   Transaction in which Ø   a contract of purchase or sale of Ø   any commodity including shares and stocks Ø   is periodically or ultimately settled Ø   Otherwise than by Ø   Actual delivery or transfer of the commodity or scrips Where any part of a company consists of purchase and sale of shares of other companies, that company shall be deemed to be carrying speculative business to that extent. Deeming provision not applicable to:- a. A company whose Gross Total Income mainly consists of Ø ...
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Income under the Head PGBP

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Income Chargeable under the Head PGBP Section 28 – Profits and Gains from Business and Profession Following are the items chargeable under the head PGBP:- S. No Income under the head PGBP 1 Income from Business/Profession /Vocation 2 Compensation received in relation to Ø   Termination/Modification of Managing Agent's Agreement -Managing   Indian Company Ø   Termination/Modification of Managing Agent's Agreement -Managing   and other company in India Ø   Termination/Modification of a person's agency agreement( Contract ) -Managing   business of other person Ø   Vesting of management of property or business with Govt/Govt Corporation 3 Income from specific services Performed by trade or professional association for its members 4 Export Incentives Ø   Import License - Profit on sale of Import License Ø   Cash Assi...
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