While preparing P&L account for the year for a professional individual, the income exempt from tax such as PPF interest, s. 10(38), etc., etc. is to be included in the p&l account or can it be directly transferred to the Capital account of the proprietor?
As per my understanding of section 10, it do states that incomes which are not chargeable to tax not ti be included in total income.
please guide me.
Your understanding is correct. P&L acc can be just for professional income.
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