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Tax base information as per IT acts

Yasaswi Gomes new (Finance ) (4524 Points)

02 December 2024

Where can I find information regarding prescribed tax bases as per the IT acts.

Eg: debentures, Prepaid expenses, Depreciation, Accrued expenses, Employee Obligations, revaluations Etc.

I want to determine the tax base for these things.

Regards

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Yasaswi Gomes new (Finance ) (4524 Points)
Replied 03 December 2024

Thank you! AI has picked up something for a start from your answer.

Sure! Here are some transactions under Sections 28 to 44 of the Income Tax Act, 1961, that give rise to taxable temporary differences:

### Section 28: Profits and Gains of Business or Profession
- **Depreciation Methods**: Differences between accounting depreciation (e.g., straight-line) and tax depreciation (e.g., accelerated).

### Section 29: Income from Profits and Gains of Business or Profession
- **Revenue Recognition**: Differences in recognizing revenue for accounting purposes (when earned) versus tax purposes (when received).

### Section 30: Rent, Rates, Taxes, Repairs and Insurance for Buildings
- **Deductions for Repairs and Insurance**: Timing differences in recognizing these expenses for accounting and tax purposes.

### Section 31: Repairs and Insurance of Machinery, Plant, and Furniture
- **Deductions for Repairs and Insurance**: Timing differences in recognizing these expenses for accounting and tax purposes.

### Section 32: Depreciation
- **Depreciation Allowance**: Differences in depreciation methods and rates used for accounting and tax purposes.

### Section 33: Development Rebate
- **Investment in New Machinery or Plant**: Differences in recognizing investment rebates for accounting and tax purposes.

### Section 34: Development Allowance
- **Investment in New Plant or Machinery**: Differences in recognizing development allowances for accounting and tax purposes.

### Section 35: Expenditure on Scientific Research
- **R&D Expenses**: Differences in recognizing research and development expenses for accounting and tax purposes.

### Section 36: Deductions from Income from Business or Profession
- **Various Deductions**: Differences in recognizing various deductions allowed for accounting and tax purposes.

### Section 37: General Deductions
- **Other Deductions**: Differences in recognizing general deductions for accounting and tax purposes.

### Section 38: Deductions in Respect of Certain Income
- **Specific Deductions**: Differences in recognizing specific deductions for accounting and tax purposes.

### Section 39: Income Comprised in Total Income
- **Computation of Total Income**: Differences in recognizing income components for accounting and tax purposes.

### Section 40: Amounts not Deductible
- **Non-Deductible Amounts**: Differences in recognizing non-deductible amounts for accounting and tax purposes.

### Section 41: Profits and Gains of Business or Profession Assumed to be Income of Another Person
- **Attribution of Income**: Differences in recognizing income attributed to another person for accounting and tax purposes.

### Section 42: Income Comprised in Total Income in Case of Association of Persons or Body of Individuals
- **Computation for AOP/Bodies**: Differences in recognizing income components for accounting and tax purposes.

### Section 43: Definitions
- **Definitions**: Differences in interpreting definitions for accounting and tax purposes.

### Section 44: Income Comprised in Total Income in Case of Individual or Hindu Undivided Family
- **Computation for Individuals/HUFs**: Differences in recognizing income components for accounting and tax purposes.

These temporary differences can lead to the creation of deferred tax assets or liabilities, depending on whether the tax expense is higher or lower than the accounting expense.

Does this cover what you were looking for, or do you need more details on any specific section?