₹50 Lakh Business Receipts = ₹50 Lakh Taxable Income? | Income-tax Act 2025 | Day 18

💼 *Your business received ₹50 LAKH during the year. Does that mean ₹50 lakh is your taxable business income?* *Not necessarily.* In *Day 18 of Understanding Income-tax Act, 2025 — 100 Days**, we explain how income under the head **“Profits and Gains of Business or Profession”* is computed. One of the most important concepts for every business owner, freelancer, consultant and professional to understand is: *TURNOVER / GROSS RECEIPTS ≠ TAXABLE BUSINESS PROFIT* And even: *ACCOUNTING PROFIT ≠ NECESSARILY TAXABLE PROFIT* In this episode, we explain: • What comes under Profits and Gains of Business or Profession • Turnover/gross receipts vs business profit • Allowable business and professional expenditure • Why every expense in the books isn't automatically tax-deductible • Revenue expenditure vs capital expenditure • Personal expenses vs genuine business expenses • Depreciation on eligible business assets • Tax adjustments and applicable disallowances • Why accounting profit and taxable profit can differ • Practical ₹ examples of business-income computation The basic framework is: *BUSINESS / PROFESSIONAL RECEIPTS* ↓ *ALLOWABLE BUSINESS EXPENDITURE* ↓ *DEPRECIATION / PERMITTED ADJUSTMENTS* ↓ *DISALLOWANCES / TAX ADJUSTMENTS* ↓ *PROFITS & GAINS OF BUSINESS OR PROFESSION* 💡 *KEY TAKEAWAY* *₹50 LAKH BUSINESS RECEIPTS ≠ ₹50 LAKH TAXABLE BUSINESS INCOME.* Taxable business/professional income is determined by applying the relevant computation provisions of the Income-tax Act, 2025—not simply by looking at the money received in the business bank account. 📚 *UNDERSTANDING INCOME-TAX ACT, 2025* *100 DAYS • DAY 18* Our journey through the Five Heads of Income: Day 15 → Five Heads of Income Day 16 → Salaries Day 17 → Income from House Property *Day 18 → Profits and Gains of Business or Profession* Next, we continue systematically through the Income-tax Act, 2025. 🔔 *Subscribe to The CA Vault Official* for the complete 100-Day series. *100 DAYS. ONE ACT. SIMPLE LANGUAGE.* ⚠️ *Disclaimer:* This video is for educational and informational purposes only and should not be treated as professional tax advice. Actual tax treatment depends on the facts of each case and the applicable provisions of law. #IncomeTaxAct2025 #BusinessIncome #IncomeTaxIndia #TaxEducation #TheCAVaultOfficial