Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
trade
1 It means purchase
and sale of goods
carried on with
profit
Commerce
motive
2 It means trade
carried on a large
scale.
Manufacture
3 Making of new
and different
article out of
input material by
physical or
mechanical
labour.
Any
of
11 Regularity
adventure or
transactions
or
concern in
continuity of activities
the nature of trade,
4
commerce or
Objective of earning
2
manufacture
profits
A single isolated
transaction outside
Application of
3
the
labour and skill
assessees line of
business may
constitute adventure
in
nature
and
Whether
Whether of
an
antrade
activity
activity
is
is an
an adventure
adventure or
or
concern
concern
in
in
the
the
nature
nature
of
of
trade,
trade,
commerce
commerce
commerce.
or
or manufacture
manufacture is
is to
to be
be decided
decided on
on the
the
basis
basis of
of cumulative
cumulative effect
effect of
of the
the facts
facts and
and
circumstances
circumstances of
of each
each case.
case.
Types of Business
There are two types of business
Profession
(2(36))
Profession refers to activities of earnings using
intellectual skills.
METHOD OF ACCOUNTING
The Act does not prescribe any specific books of account for business.
However you are expected to maintain your accounts in such a fashion
that the net profit of the business can reasonably and easily be arrived
at by the department.
exceeding rupees 10 lakh and net profit of rupees one lakh twenty
thousand, must maintain such books of account and documents from
which its income can be reasonably ascertained by the department.
(i) Every person carrying on business shall get his accounts audited if the total
sales, turnover or gross receipts in business exceed Rs 60 lakhs in the previous
year. (Now Rs. 1 Crore)
(ii) Every person carrying on profession shall get his accounts audited if his gross
receipts exceed Rs 15 lakhs in the previous year. (Now Rs. 15 Lakhs)
What is Deduction?
Any item or expenditure subtracted from gross
income to reduce the amount of income subject
to tax.
Admissible Deductions
Section 20 (1)
Depreciation U/S 32
Building
10%
Computer
& Software
60%
Furniture
and fittings
10%
Books and
publication
s
100%
Intangible
assets
Motar car
15%
Palnt &
Machinery
15%
Intangible
assets
25%
4
5
Preliminary expenses
6
Expenditure
should have
been
incurred in
connection
with
assessees
own
Business.
Expenditure
should
relate to the
previous
year in
which
business
has been
carried on.
Onus to
prove the
admissibilit
y of
expenditure
lies on the
assessee.
No
allowance
in respect
of
expenditure
incurred
before date
of settingup of
4
business:
Amt
Amt
Professional Incomes:
ADD:
1. Fees (All Professionals)
XXXX
X
XXXX
X
XXXX
X
XXXX
X
XXXX
X
XXXX
X
Total
XXXX
X
XXXX
Thank You