PGBP Explained 🔥 Sections 28, 29, 32 & 37 | Business Income under Income-tax Act

Описание: Welcome to Lecture 4 of our Tax Law Series, where we take a deep dive into one of the most important and scoring heads of income under the Income-tax Act, 1961 —
👉 Profits and Gains from Business or Profession (PGBP).

This lecture explains the charging provision, computation mechanism, depreciation rules, and general deductions, supported by landmark Supreme Court judgments and exam-ready illustrations.

📚 Topics Covered in This Lecture

🔹 Importance of PGBP as a separate head of income
🔹 Section 28 – Incomes chargeable to tax
✔ Meaning of business & profession
✔ Taxability of partner’s salary, bonus & interest
✔ Compensation, perquisites & speculative income
🔹 Section 29 – Method of computation of business income
🔹 Section 32 – Depreciation
✔ Block of assets concept
✔ Conditions for claiming depreciation
✔ Tangible & intangible assets
🔹 Section 37 – General deductions
✔ Wholly & exclusively for business
✔ Commercial expediency test
✔ Illegal & prohibited expenses (disallowance)
🔹 Practical illustrations & exam-oriented problem approach

⚖️ Landmark Case Laws Discussed

📌 CIT v. Barendra Prasad Ray – Professional income as business income
📌 Kedarnath Jute Mfg. Co. Ltd. v. CIT – Liability vs actual payment
📌 Mysore Minerals Ltd. v. CIT – Beneficial ownership for depreciation
📌 CIT v. G.R. Shipping Ltd. – Passive use of asset
📌 S.A. Builders Ltd. v. CIT – Commercial expediency
📌 Maddi Venkataraman & Co. v. CIT – Illegal expenses not deductible

🎓 Who Should Watch This Lecture?

✔ LLB / B.Com / M.Com / MBA students
✔ CA, CS, CMA & Taxation aspirants
✔ Judicial Services & UGC-NET candidates
✔ CLAT & law entrance aspirants
✔ Professionals dealing with business taxation

🎯 Why This Lecture Is Important

✔ Core topic for Income-tax exams & practice
✔ Frequently tested case-law-based questions
✔ Helps distinguish capital vs revenue expenditure
✔ Essential for understanding real profits vs taxable profits

📌 One-line takeaway:

Business income is computed on commercial principles, but taxed strictly as per statute.

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