Direct Tax Engine • FY 2025-26 (AY 2026-27) • 100% In-Browser RAM Execution
Regular Business & Professional Tax Calculator (Schedule BP & PGBP)
Deterministic direct tax computation and statutory Schedule BP reconciliation for Indian sole proprietors and professionals under the Income-tax Act, 1961.
Frequently Asked Questions (Regular Tax & Schedule BP)
What is the Regular Tax (PGBP & Schedule BP) Calculator?
The Artha Regular Tax Calculator is a deterministic direct tax simulator for Indian sole proprietors, freelancers, and small business owners computing taxes under Profits and Gains of Business or Profession (PGBP) for FY 2025-26 (AY 2026-27). It reconciles commercial accounting profits with statutory tax disallowances (Sections 40(a), 40A(3), 43B, 43B(h)), calculates 5-block tax depreciation (Section 32), protects salary income from business losses (Section 71(2A)), models quarterly advance tax (Section 211), and computes interest penalties under Sections 234A, 234B, and 234C under Rule 119A.
How does Schedule BP reconciliation work in the Regular Tax scheme?
Under Schedule BP of the ITR, computation begins with Commercial Net Profit Before Tax from the Profit & Loss statement. Statutory non-deductible items are added back (e.g. accounting depreciation, direct income tax u/s 40(a)(ii), 30% TDS defaults u/s 40(a)(ia), cash payments exceeding ₹10,000 u/s 40A(3), delayed employee PF/ESI contributions u/s 36(1)(va), unpaid statutory dues u/s 43B, and overdue MSME payments u/s 43B(h)). Non-business incomes are deducted, and allowable Section 32 block depreciation is subtracted to arrive at taxable PGBP income.
How does Section 32 Block Depreciation and Section 50 Short-Term Capital Gains work?
Depreciation is calculated per asset block (Computers @ 40%, Plant & Machinery @ 15%, Furniture & Fixtures @ 10%, Motor Vehicles @ 15% [30% for hiring business under Appendix I], Office Buildings @ 10%). Additions used for fewer than 180 days receive 50% of the standard rate (Second Proviso to Sec 32(1)). If disposal proceeds exceed the opening WDV plus additions, depreciation is reduced to zero and the excess is treated as Deemed Short-Term Capital Gain under Section 50.
Can business losses offset salary income under Section 71(2A)?
No. Section 71(2A) of the Income-tax Act strictly prohibits any loss under the head "Profits and gains of business or profession" from being set off against income under the head "Salaries". Business losses may offset income from House Property, Capital Gains, or Other Sources in the current assessment year, and any unabsorbed business loss may be carried forward for up to 8 assessment years provided the tax return is filed on or before the Section 139(1) due date.
What are the advance tax installment deadlines and Section 234C interest penalties?
Unlike presumptive taxpayers who pay on March 15, regular taxpayers must pay advance tax in 4 statutory installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Shortfalls incur simple interest at 1% per month for 3 months (or 1 month for March) under Section 234C, calculated on principal bases rounded down to lower multiples of ₹100 under Rule 119A.
When does a business or professional require a Tax Audit under Section 44AB?
For businesses, a tax audit by a Chartered Accountant (Form 3CB-3CD) is mandatory if gross turnover exceeds ₹1 Crore (or ₹10 Crores if aggregate cash receipts and payments do not exceed 5%). For specified professionals maintaining regular books, tax audit is mandatory under Section 44AB(b) if gross receipts exceed ₹50 Lakhs (the 5% cash relaxation does not apply to 44AB(b); ₹75 Lakhs is exclusive to Section 44ADA presumptive taxation), or under Section 44AB(d) if profits are declared below the statutory 50% deemed rate and total income exceeds the basic exemption limit.