Calculation of Average Net Profit

2019-20 2020-21 2021-22

Particulars Amount Amount Amount
Net profit after tax*
Add :  Allowed Credits
1 Profit on sale of immovable property
( Original Cost – WDV )

Less: Credits Disallowed

1 Premium on shares or debentures- issued/sold
2 Profit on sale of forfeited shares
Profit on sale of immovable property/FA- Capital Nature-
3 Wholly/partly
Profits of capital nature- sale of undertaking- as a whole
Surplus in P&L on measurement of asset or liability at fair
4 value/Revaluation Reserves

Less: Expenses Allowed

1 All the usual Working Charges
2 Director’s Remuneration
3 Bonus or Commission paid to Staff
4 Tax on excess or abnormal profits

5 Tax on business profits imposed for special reasons- notified by CG

6 Interest on Debentures
Interest on Loans/mortgages/advances-secured by charge on
7 fixed/floating assets
8 Interest on unsecured Loans and Advances
Expenses on repairs- movable/immovable property ( other than
9 Capital Expenditure)

10 Contributions made under section 181 ( Bonafide Charitable Trusts )

11 Depreciation to the extent section 123 schedule II
12 Prior period items
Legal liability for compensation or damages including liability from
13 breach of contract
14 Insurance Expenses on pt no 12
15 Bad debts written off/adjusted during the year

Add: Expenses Disallowed

1 Income Tax
Compensations, damages or payments made voluntarily for pt no
2 12 above
Capital Loss on sale of undertaking or part thereof ( Not include
3 losses on sale of asset )
Expenditure in P&L on measurement of asset or liability at fair
4 value/Revaluation reserves
Net Profit 0 0 0