Section 27
Section 27: manner of computing profits and gains of business or profession
Section 27 is a brief but important connector provision. It doesn't set out any computation rule itself - it simply directs that the income chargeable under section 26 must be computed following the detailed rules in sections 28 to 60 of the Act (with one specific exclusion).
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 27 says
"The income referred to in section 26 shall be computed as per the provisions of sections 28 to 60, except section 58."
What this means in practice
This section is a signpost rather than a substantive rule - the actual mechanics of computing business/professional profits (allowable expenses, depreciation, specific deductions and disallowances, and so on) are spread across sections 28 to 60.
Section 58 is specifically carved out from this computational chain, meaning it does not apply to the computation of income under section 26 in the way the other sections in that range do.
Frequently asked questions
Does Section 27 itself list any deductions or expenses?
No - it only points to sections 28 to 60 as the source of the detailed computation rules for business/professional income, excluding section 58.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026