Profits and gains of business or profession - Income Tax Bill, 2025

Chapter: IV

COMPUTATION OF TOTAL INCOME

Part: D
Profits and gains of business or profession
Clause 26	:	Income under head “Profits and gains of business or profession” Clause 26 of the Bill seeks to provide charging of income-tax on income under the head Profits and gains of business or profe....
Clause 27	:	Manner of computing profits and gains of business or profession. Clause 27 of the Bill provides for the manner of computing income under the head Profits and gains of business or profession ....
Clause 28	:	Rent, rates, taxes, repairs and insurance. Clause 28 of the Bill provides for deduction for expenses on account of rent, repairs, insurance premium, local taxes, etc.....
Clause 29	:	Deductions related to employee welfare. Clause 29 of the Bill seeks to provide the deduction related to employee welfare including contribution to various funds, etc....
Clause 30	:	Deduction on certain premium. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 31	:	Deduction for bad debt and provision for bad and doubtful debt. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 32	:	Other deductions. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 33	:	Deduction for depreciation. Clause 33 of the Bill provides for deduction in respect of tangible and intangible assets owned and used for the purposes of ....
Clause 34	:	General conditions for allowable deductions. Clause 34 of the Bill provides for general conditions for allowing expenditure (other than capital and personal expenditure) ....
Clause 35	:	Amounts not deductible in certain circumstances. Clauses 35 and 36 of the Bill provides for amounts not to be allowed while computing the income under the head Profit and gai....
Clause 36	:	Expenses or payments not deductible in certain circmstances. Clauses 35 and 36 of the Bill provides for amounts not to be allowed while computing the income under the head Profit and gai....
Clause 37	:	Certain deductions allowed on actual payment basis only. Clause 37 of the Bill provides for certain deductions allowed on certain expenditures which is to be made only on actual paym....
Clause 38	:	Certain sums deemed as profits and gains of business or profession. Clause 38 of the Bill provides for certain sums that are liable to be deemed as profit and gains of business or profession wh....
Clause 39	:	Computation of actual cost. Clause 39 of the Bill provides for certain definitions such as actual cost, written down value, speculative transactions, etc....
Clause 40	:	Special provision for computation of cost of acquisition of certain assets. Clause 40 of the Bill provides for special provision for computation of cost of acquisition of certain assets.....
Clause 41	:	Written down value of depreciable asset. Clause 41 of the Bill provides for written down value of depreciable asset and, inter alia, provides certain definitions such....
Clause 42	:	Capitalising the impact of foreign exchange fluctuation. Clauses 42 and 43 of the Bill provide for capitalising the impact of foreign exchange fluctuation and taxation of foreign exc....
Clause 43	:	Taxation of foreign exchange fluctuation. Clauses 42 and 43 of the Bill provide for capitalising the impact of foreign exchange fluctuation and taxation of foreign exc....
Clause 44	:	Amortisation of certain preliminary expenses. Clause 44 of the Bill provides for amortisation of certain preliminary expenses insured by specified businesses before commen....
Clause 45	:	Expenditure on scientific research. Clause 45 of the Bill provides for deduction of certain capital expenditure (other than cost of land) or revenue expenditure ....
Clause 46	:	Capital expenditure of specified business. Clause 46 of the Bill provides for deduction of certain capital expenditure of specified business incurred subject to fulfilm....
Clause 47	:	Expenditure on agricultural extension project and skill development project. Clause 47 of the Bill provides for deduction of expenses incurred for agricultural extension projects and skill development p....
Clause 48	:	Tea development account, coffee development account and rubber development account. Clauses 48 and 49 of the Bill provide for tea development account, coffee development account and rubber development account ....
Clause 49	:	Site Restoration Fund. Clauses 48 and 49 of the Bill provide for tea development account, coffee development account and rubber development account ....
Clause 50	:	Special provision in case of trade, profession or similar association. Clause 50 of the Bill provides for deduction in the case of specified associations for the interest and welfare of members of....
Clause 51	:	Amortisation of expenditure for prospecting certain minerals. Clause 51 of the Bill provides for amortisation of expenditure for prospecting certain minerals.....
Clause 52	:	Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc. Clause 52 of the Bill provides for amortisation of expenditure for telecommunications services, amalgamation, demerger, schem....
Clause 53	:	Full value of consideration for transfer of assets other than capital assets in certain cases. Clause 53 of the Bill provides for full value of consideration for transfer of assets other than capital assets in certain ca....
Clause 54	:	Business of prospecting for mineral oils. Clause 54 of the Bill provides for deduction of certain capital expenditure expenses incurred in business of prospecting for ....
Clause 55	:	Insurance business. Clause 55 of the Bill provides for the manner of computation of profits or gains in cases of insurance business.....
Clause 56	:	Special provision in case of interest income of specified financial institutions. Clause 56 of the Bill provides for computation of interest income of specified financial institutions.....
Clause 57	:	Revenue recognition for construction and service contracts. Clause 57 of the Bill provides for revenue recognition for construction and service contracts.....
Clause 58	:	Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents. Clause 58 of the Bill provides for special provision for computing profits and gains of business of profession on presumptive....
Clause 59	:	Chargeability of royalty and fee for technical services in hands of nonresidents. Clause 59 of the Bill provides for chargeability of royalty and fee for technical services in hands of non-residents.....
Clause 60	:	Deduction of head office expenditure in case of non-residents. Clause 60 of the Bill seeks to provide the manner for computation for allowing the deduction of head office expenditure in ca....
Clause 61	:	Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents. Clause 61 of the Bill provides for special provision for computation of income on presumptive basis in respect of certain bus....
Clause 62	:	Maintenance of books of account. Clause 62 of the Bill provides for maintenance of books of accounts and seeks to deal with maintenance of books of account.....
Clause 63	:	Tax audit. Clause 63 of the Bill provides for tax audit and also provides for auditing of books account by specified accountant under ce....
Clause 64	:	Facilitating payments in electronic modes. Clause 64 of the Bill provides for facilitating payments in electronic modes.....
Clause 65	:	Special provision for computing deductions in case of business reorganisation of co-operative banks. Clause 65 of the Bill provides for special provision for computing deductions in case of business reorganisation of co-operat....
Clause 66	:	Interpretation. Clause 66 of the Bill provides for interpretation of Chapter IV-D which deals with various definitions related to income unde....