INCOME FROM BUSINESS & PROFESSIONS | INCOME TAX | SEM-4 | PROFORMA EXPLAINATION | @shivanipallela

Added: 2026-05-23

[00:00:00]Hello all, welcome back to our channel.

[00:00:02]So, students in this video we will discuss income tax fourth unit profit and gains of business as well as profession. In this unit you will have two topics ma, business and profession. From business you are having a huge chance of getting problematic and from profession you may get theory question in law. So, in this video we'll discuss a brief introduction of this unit as well as the pro forma also. Pro forma explanation also so that you can easily understand while explaining the problematic you will easily get understand. So, without getting late let's get into the video students.

[00:00:41]So students, this is your pro forma of income from business. So basically a unit law you will have two topics ma.

[00:00:49]So, one is business and the second one is profession. So means one question will come from business and second question will will come from profession.

[00:00:59]Out of this two methods prepare any one method means from business you may get a 99.9% problematic only and from profession they may ask theory question. So, both are easy. So, I will explain both the questions problematic questions you don't need to worry about, okay? So, coming back to the pro forma first you will have a net profit as per the P&L account ma. So, as per P&L account that amount you need to enter into the outer column then you need to add all inadmissible expenses. Inadmissible expenses is nothing but not related to the business.

[00:01:40]Okay? Business local relate a money in expenses and need you need to add it, okay? For example, income tax, okay?

[00:01:50]Charity and donations and household expenses salary to proprietor, gifts and presents, okay? Staff welfare fund. So, this type of things you need to add in your pro forma. See, household expenses, so it will be salary only proprietor salary they should mention it as a proprietor salary. Then only you should take it as a inadmissible expenses. So, inadmissible expenses you need to add it all things it will come. Then, whatever the incomes you are getting from the other heads rather than the business is called minus you need to do. Means, for example, rent received, interest from bank, dividend received, sale of land, refund of income tax. These are all incomes for us, no? You need to minus that incomes for incomes from this, okay? And in deductions part you will have mostly three deductions, ma. The first one is depreciation, second one is sales tax paid, and the third one is excise duty paid.

[00:03:15]Got it? So, these three will comes in the deductions. So, pro forma is important. Pro forma you need to be by heart or else you need to learn and you need to present the pro forma as it is in your book. Out of 12 marks, seven to six marks you can score if you are written pro forma in your booklet, okay?

[00:03:39]So, that's why what I will tell each and every student means try to learn the pro formas, okay? Whether you will by heart it, whether you will learn it, it's up to you. But without learning pro formas, you will not understand the income tax, okay? So, this is the business proforma, ma. So, coming back to the profession, in any profession, you will have a receipts payment. From receipts, if you minus payments, means that is called income from profession. So, profession, while you are doing profession, whatever the receipts you are having related to the profession, whatever the expenses you are having related to the profession, adhi matrame theesukovali.

[00:04:19]Expenses aina, incomes aina, professional ki sambandhinchina matrame undali. Okay, it should not get any personal. If it is personal, you should not take it, okay? So, in a profession, you will have, ma, uh chartered accountant you will have, doctor you will have, and lawyer you will have. These three professions you are having, doctor, lawyer, and chartered accountant. So, a profession lo aina manaki receipts, incomes untayi, expenses untayi. From incomes, if you deduct expenses, that is called income from profession. From incomes, you need to deduct the expenses.

[00:04:59]Okay? Then you will get income from professions. So, these three professions is important, and this is about the fourth unit, because this will be useful for you before explanation of problematic. So, I will explain the video soon. In upcoming videos, I will explain the whole chapter within one video. So, if you watch my video, it will be enough to complete the chapter.

[00:05:24]So, that's why I will do, ma. So, this is all about the video. If you like this video, then do like, share, comment, and subscribe to our channel. And we are near to 50K subscribers. Just subscribe and boost our channel. Hope we will reach 50K by the end of the June, okay?

[00:05:42]So, this is all about the video, students. If you think this is worthy, then do like, share, comment and subscribe to our channel because see the time now, it's 1:26 a.m. And I hope see 1:26 a.m. Sunday 9th June.

[00:05:59]So, I hope that you have perfect with this video. And if you're having any other doubts related to this video or any other videos, you can do comment down in the comment section. So, all the best for your examination as well as the preparation. See you all in the next video. Bye-bye, students.