Home › CA Final › taxation › Profits and Gains of Business or Profession › Section 145 method of accounting for PGBP is:
Section 145 method of accounting for PGBP is:
ACash or mercantile regularly employed
BOnly mercantile (per relevant Section)
COnly cash
DAO's choice
Answer & Solution
Correct answer: A. Cash or mercantile regularly employed
1. Section 145(1): PGBP income computed under either cash or mercantile system regularly employed.
2. Section 145(2): CBDT can notify Income Computation and Disclosure Standards (ICDS).
3. Section 145(3): AO can reject books if not correct/complete/method irregular.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
Related questions
Which statement about the deductibility of Securities Transaction Tax (STT) and CommoditieA firm's net profit is Rs 17,00,000 before deducting partner salary of Rs 9,60,000, deprecA tyre manufacturer (opted out of the default regime) instals plant and machinery of Rs 12Unpaid interest of Rs 45,00,000 due to a State Financial Corporation and a bank was converA trader's turnover for P.Y. 2025-26 is Rs 8 crore. Cash receipts are 3 per cent of total An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was receivA car purchased on 10.8.2022 for Rs 5,25,000 for personal use was brought into professionaA company claimed Rs 50,00,000 under section 35AD for a warehouse building in A.Y. 2025-26