Tip Inc., a foreign company, headquartered at Malaysia, has a branch in India. For the financial year ended 31.03.2024, the branch has shown net…

Computation of income to be declared by the branch in its return of income Computation of Head Office expenses allowable u/s 44C: Particulars Particulars ₹ Net profit of the branch 28,00,000 Add: Head office expenditure debited to profit and loss 1,20,00,000 Unabsorbed depreciation 17,00,000 Capital expenditure for promoting family planning 7,00,000 Brought forward business loss 25,00,000 Deductions under Chapter VI-A 20,00,000 1,89,00,000 Adjusted total income 2,17,00,000 Note - Depreciation for the current financial year and capital expenditure on scientific research are not required to be added back for computing adjusted total income. Head office expenses allowable u/s 44C = 10,85,000 Being the lower of - (i) 5% of 2,17,00,000 = 10,85,000 (ii) Actual Head Office expenses allocated to the branch = 1,20,00,000 Income to be declared by the branch for A.Y.2024-25 Particulars ₹ Net profit of the branch 28,00,000 Add: Head office expenditure debited to profit and loss 1,20,00,000 1,48,00,000 Less: Head office expenses allowable u/s 44C 10,85,000 Income to be declared by the branch 1,37,15,000