Calculation of Income from Profession- Doctor- Practice Sums

 

Dr.Ramesh is a Medical Practioner. He gives the following summary of cash book for the year ending 31-3-2025.

To Balance To consultation fees To visiting fees To Gifts and Presents To sale of medicines To Dividends fro U.T.I To Life Insurance Maturity To Interest from National Defense Bonds	10,000 60,000 45,000 8,000 42,000 6,000 1,00,000 6,000	By Rent of Clinic By Purchase of Medicines By staff salaries By surgical equipment By motor car expenses By Purchase of motor car By household expenses By Closing Stock	18,000 38,000 24,000 40,000 8,000 1,40,000 7,000 2,000

 Other Information:

1.         i.   50% of the motor car expenses incurred in connection with profession. Car was purchased in December, 2024.
2.       ii.            Household expenses include Rs.6,800 for life insurance premium
3.     iii.            Gifts and presents include Rs.3,000 from relatives
4.     iv.            Closing stock of medicine Rs.12,000 and on 1-4-2024 opening stock Rs.4,000

Compute his Professional gain for the assessment year 2025-26.

Solution

Computation of Professional gain

	Rs.	Rs.
Professional Receipts: Consulting fees Visiting fees Gifts& Presents(8,000-3,000) Sale of medcines	60,000 45,000 5,000 42,000	1,52,000
Less: Professional Expenses Rent of Clinic Mediine Staff Salaries Depreciation of Surgical Equipment(40,000x15%) Motor car Expenses(1/2) Depreciation on Car (1,40,000x15%)x1/2	18,000 38,000 24,000 6,000 4,000 5,250	95,250
PROFESSIONAL GAIN		56,750