Net profit is income or a part of income?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2012 Respected All,

As per my knowledge Net Profit is a part of Income, that why I am saying before it is not a full Income of Business Entity.

If we considered net profit is income than what is the expenses of Business entity for previous year, current year & future.

I am drafting how to dearness is incress or what is the solution. I am a simple B. Com my knowledge of Income Tax for working 15 year expreance, So I request to all of you please guide I am on wrong way or write way to help me out for drafting. I am waiting your reply.

Thanking You,
Shailesh Kanth

I want to say that under Income tax Act what is the definition of sale, Other income, purchase, direct expenses, indirect expenses.

Thanking You,
Shailesh Kanth

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)
Follow

18 February 2012 I am not able to understand what you want to say. Please say clearly whatever you want to say.

Message likes : 1 times

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

18 February 2012 The author perhaps, wants to say that , Net Profit is part of Income. What ever expenditure is being debited to P&L A/c that is reduced from the WHOLE Income.
.
In company results, Income and net profits
are referred separately. Income includes Sales and other Income. Profit and Income can be treated differently.
.
So, it's not wrong to say that profit is part of income.
.
All the best for drafting an article on the burning issue.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!