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Profit and Gains of Business or Profession u/s 28 - 44Income taxable under the head Profits and Gains of Business or Profession Section 28Admissible Deductions:I. Allowed business losses. 1. Loss of Trading Goods. 2. Loss on Accounts of Forfeiture of Advances. 3. Loss on Account of Guarantee in Trade. 4. Loss due to carelessness coercion, theft, embezzlement by employee. 5. Loss due to dacoits. 6. Theft of cash from safe. 7. Loss of trade stock and goods on foreign aliens attack. 8. Loss on sale-purchase of securities. 9. Loss on account of fluctuations in exchange rates 10. Loss on terminations of contract. 11. Loss in transit of raw material or furnished goods. 12. Loss on forfeiture of security depositedII. Expenses or deductions expressly allowed: 1. Expenses relating to building - U/S 30 2. Expenses of machine, furniture and plant - U/S 31 3. Depreciation and allowable allowance - U/S 32 4. Tea development account, Coffee development account and Rubber development account - U/S 33AB 5. Deduction regarding deposit in site restoration fund - U/S 33ABA 6. Expenditure on scientific research - U/S 35 7. Expenses incurred in acquiring patent rights and copyrights - U/S 35A 8. Expenses on acquiring technical know-how - U/S 35AB 9. Expenditure for obtaining rights to use spectrum for TeleCommunication services - U/S 35ABA 10. Capital expenditure to obtain license to operate Tele-Communication services - U/S 35ABB 11. Deduction in respect of Expenditure on specified business - U/S 35AD 12. Deduction of payment in rural development fund - U/S 35CCA 13. Expenditure incurred on agricultural extension project - U/S 35CCC 14. Expenditure incurred on any skill development project - U/S 35CCD 15. Deduction in respect of preliminary expenses - U/S 35D 16. Amortization of expenditure in case of amalgamation or demerger - U/S 35DD 17. Amortization of expenditure under voluntary retirement scheme - U/S 35DDA 18. Expenses on the discovery of minerals - U/S 35E 19. Other deductions - U/S 36III. Expenses or deductions allowed on the basis of general commercial principles: 1. These deductions should not be of expenses mentioned in section 30 to 36. 2. These expenses should be related with the trade operated by the assessee and the profit must be taxable. 3. They should not be personal or domestic expenses of assessee. 4. Payment of these expense must be in relation to business or profession fully. 5. These expenses should not be of capital nature. 6. These expenses should be paid in the previous year. 7. These expenses should not be paid for such object which are prohibited by any law or are in connection with any crimeExpenses Expressly DisallowedRate of DepreciationComputation of Income from BusinessProfit & Loss AccountExplanation of above itemsProfessionComputation of Income from ProfessionExplanation of above items

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