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Gopika Juneja, Lovely Professional University
Unit 9: Income under the Head Business and Profession

Unit 9: Income under the Head Business and Profession Notes

CONTENTS
Objectives
Introduction

9.1 Definition of Business or Profession
9.1.1 Meaning of Business
9.1.2 Meaning of Profession

9.1.3 Continuity of Business or Profession
9.2 Basis of Charge
9.2.1 Method of Accounting
9.3 Profits and Losses of Speculation Business
9.4 Computation of Profits of Business or Profession

9.4.1 Rules for Adjustment of Profit and Loss Account Prepared by the Assessee
9.4.2 Computation of Income under the Head “Profits and Gains from Business
or Profession”

9.5 Specific Deductions under the Income Tax Act
9.6 Specific Disallowance
9.6.1 Expenses Disallowed (Section 40)

9.6.2 Expenses Restricted
9.6.3 Disallowance of Unpaid Statutory Liability (Section 43B)
9.7 Depreciation
9.7.1 Conditions for allowing Depreciation
9.7.2 Basis of Depreciation

9.7.3 Classification of Depreciation
9.7.4 Calculation of Written Down Value (WDV) of a Block of Asset
9.8 Summary

9.9 Keywords
9.10 Review Questions
9.11 Further Readings

Objectives

After studying this unit, you will be able to:

Define the concept of business or profession as well as the Basis of its Charge
Discuss the Profits and losses of speculation business
Describe the Computation of Profits of Business or Profession

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