Income, depreciation and disallowances

Clauses 15 to 21 — amounts the profit and loss account does not show, depreciation, and expenditure that is disallowed. Wizard steps 3 to 5.

Capital Asset → Stock-in-Trade (Clause 15)

Where a capital asset was converted into stock-in-trade, with the particulars of the conversion.

Amounts Not Credited to P&L (Clause 16)

Items that did not pass through the profit and loss account but belong in income — refunds, escalation claims admitted, and the rest.

Property Transfer Below Stamp Value (Clause 17)

Land or building transferred for less than the stamp duty value, with both figures.

Depreciation (Clause 18)

Block-wise depreciation per Appendix I: the block, the rate, the opening written-down value, additions, deletions, depreciation allowable and the closing figure.

Additions need their date of putting to use — the half-year rule turns on it.

Deductions u/s 33AB, 35, 35AD (Clause 19)

Deductions admissible under the specified sections, with the amount debited in the books and the amount admissible.

Those two columns exist because they differ. Reporting only what was debited misses the point of the clause.

Bonus, PF & ESI (Clause 20)

Bonus or commission to employeesSection 36(1)(ii)

Where it would otherwise have been payable as profit or dividend.

Employee contributions to welfare fundsSection 36(1)(va)

The sum received, the due date, and the date actually paid.

Disallowances (Clause 21)

The longest clause in this group, covering:

Capital, personal and advertisement expenditure

Debited to profit and loss.

Payments hit by section 40(a)

Including amounts where tax was not deducted or not deposited.

Payments to partnersSection 40(b)/40(ba)

Amounts inadmissible.

Cash paymentsSection 40A(3)

Exceeding the limit, otherwise than by the prescribed modes.

Provision for gratuitySection 40A(7)

Other inadmissible amounts

The nature and the amount are both wanted. A total without the analysis does not answer the clause.