What Is The Full Form Of PGBP In Income Tax?
PGBP full form in income tax is Profits and Gains of Business and Profession. It includes the money made by a person or a company from their business or professional work. This covers not only money obtained from the sale of goods or services but also other profits arising from the business activities of the taxpayer.
Income and Deductions Under PGBP:
The money under PGBP can come from different places like business activities, fees for services, royalties, or profits from selling business assets. The deductions from it include the costs incurred on things like rent, salaries, repairs, and wear and tear of assets, again reducing the taxable income. The provisions of deduction are allowed under the Income Tax Act Sections 30 to 37. However, some of the expenses are not considered appropriate for deductions. These include personal expenses or expenses relating to income that is not taxed, such as money from farming.
Tax Compliance and Filing Requirements:
People who earn money under PGBP need to follow certain rules for filing taxes and must use specific ways of keeping accounts, either cash or accrual. The Income Tax Department requires that one files his tax returns using forms like ITR-3, for individuals and HUFs running businesses or offering professional services. Adhering to this set of rules helps report taxes properly and saves one from such kinds of penalties.