Profit and Gains from Business and Profession
The expenses that have nothing to do with the business,
have to do with some other head of income, they will not be
allowed.
If you have put those expenses in your Profit and Loss
account, then we request you to remove those expenses from
there.
When your expenses will be removed from the Profit and Loss
account, then your profit will increase.
And take those expenses to some other head of income.
Remove it from there.
This is the matter.
Now let us see what are those points.
Whatever expenses will be related to business, will be
allowed.
For example, let me ask you.
I am not coming here to teach you, I am just coming to
discuss with you.
I am telling you stories, keep answering with yes or no.
For example, you took a shop to run a business,
Rs. 5000 per month on rent.
What is the annual rent? Rs. 60,000.
Your sale minus purchase, and the profit that came out of
it, is Rs.
10,00,000 per year.
Now tell me one thing.
Should we reduce the expense of Rs.
60,000 from that Rs.
Think carefully and tell me.
Why did you give Rs.
5000 per month on rent?
So that you get a shop.
If you did not have that shop, would you be able to run a
business?
Would the customer come to your shop?
To buy things?
Would he come? No.
Would your business run? No.
So would it be right to say that the Rs.
5000 per month that you are giving, is the expense of your
business?
Yes, sir.
It would be absolutely right to say that.
So should this expense be allowed?