# PGBP Chapter — Smart/Bird's-Eye View (Sec 28 to 44)
This is the scaffolding of the PGBP chapter. Once you remember which section covers what, every problem can be slotted into this map.
## The Skeleton
```
Sec 28 Charging Section — what income is part of PGBP
Sec 29 Computation: Income (-) Expenses
Sec 30-37 Expenses Allowed
├── Sec 30 Building expenses (rent, repairs, insurance)
├── Sec 31 Plant & Machinery, Furniture (repairs, insurance)
├── Sec 32 Depreciation (incl. Additional Depreciation)
├── Sec 35 Scientific Research expenditure
├── Sec 35AD Specified Business (cold chain, warehouse, hotel, etc.)
├── Sec 35D Preliminary Expenses
├── Sec 35DDA VRS Expenses
├── Sec 36 List of Specific Expenses (insurance, bonus,
│ employee contribution, bad debts, interest, etc.)
└── Sec 37 General Section — residual expenses
(Conditions: wholly & exclusively for business,
not capital/personal, not illegal)
Sec 40(a) Disallowances — TDS default, taxes, salary to partner etc.
Sec 40A Excessive payments, related-party, cash payments > ₹10,000
Sec 41 Deemed Income — Recovery of bad debts/exp. earlier allowed
Sec 43 Definitions (actual cost, WDV, transfer etc.)
Sec 43A Forex fluctuation
Sec 43B Allowed only on payment basis (statutory dues, MSME, etc.)
Sec 44AA Books of Account — Compulsory maintenance
Sec 44AB Tax Audit
Sec 44AD Presumptive — Business (8% / 6%)
Sec 44ADA Presumptive — Profession (50%)
Sec 44AE Presumptive — Goods Carriage (₹1,000 / ₹7,500 per ton p.m.)
```
## The PGBP Computation Format
```
Net Profit as per P&L xxx
Add: Expenses debited but not allowable
(Sec 40(a), 40A disallowances) xxx
Add: Sec 41 deemed income (if not credited) xxx
Less: Income credited but not taxable under PGBP (xxx)
(Dividend, FD interest, share of firm profit etc.)
Less: Allowable expenses not debited (Sec 30–37) (xxx)
Less: Depreciation (Sec 32) (xxx)
--------------------------------------------------------
Profits & Gains of Business or Profession xxx
```
## Decision: Books or Presumptive?
```
Is assessee covered u/s 44AD / 44ADA / 44AE & opts for it?
│
├── YES → Declare presumptive income → No need to maintain books u/s 44AA
│ → No audit u/s 44AB
│
└── NO → Maintain Books of Account (44AA)
→ Get them audited if turnover > limit (44AB)
```