Section 28 — PGBP (Charging Section)
Section 28 Income Tax Act: what incomes are taxable as PGBP — partner salary, non-compete fees, export drawbacks & more. CA Inter exam guide
Paper 3 — Taxation · Chapter
Profits & Gains of Business or Profession
Sections 28–44AE of Income Tax Act — the most complex head with depreciation, allowable deductions, disallowances, tax audit and presumptive taxation. Highest-weight chapter — 12–16 marks.
12 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
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2
Section 30 — Rent, Rates, Taxes, Repairs of Building
Section 30 Income Tax Act: deductions for rent, repairs, taxes & insurance on business premises. Learn who qualifies, what's allowed, and ca
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3
Section 31 — Repairs and Insurance of Machinery, Plant
Section 31 Income Tax Act: deduction for current repairs & insurance of machinery, plant & furniture — what qualifies, what doesn't, and CA
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4
Section 32 — Depreciation
Section 32 Income Tax: WDV depreciation, 180-day rule, 20% additional depreciation for manufacturers, and unlimited unabsorbed depreciation
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5
Section 35 — Expenditure on Scientific Research
Section 35 Income Tax Act: deductions for scientific research expenses — in-house, donations to IITs & labs, capital assets. Key rates & rul
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Section 36 — Other Deductions
Section 36 Income Tax Act: Learn all specific business deductions — bad debts, interest on loans, NPS, employee contributions & more for CA
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7
Section 37 — General (Residual Deduction)
Section 37 Income Tax Act: the catch-all business expense deduction for CA Inter — rules, CSR bar, illegal expense disallowance, and exam tr
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Section 40 — Amounts Not Deductible
Section 40 disallows TDS-defaulted payments (30% for residents) and excess partner remuneration/interest — critical PGBP topic tested every
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9
Section 43B — Deductions Allowed on Actual Payment
Section 43B: taxes, PF, interest & bonus deductible only on actual payment. Key PGBP rule for CA Inter — overrides accrual accounting with a
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Section 44AB — Audit of Accounts of Certain Persons (Tax Audit)
Section 44AB tax audit: turnover limits (â¹1 cr / â¹10 cr), profession threshold (â¹50 L / â¹75 L), forms 3CA/3CB, due dates & 271B pena
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Section 44AD — Presumptive Taxation for Business
Section 44ADA: presumptive taxation for professionals — 50% of gross receipts up to ₹50L treated as profit. No books needed unless you decla
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Section 44ADA — Presumptive Taxation for Professionals
Section 44ADA explained: presumptive tax for professionals at 50% of gross receipts — eligibility, ₹75L limit, and CA Inter exam tips.
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