Deduction for shortfall in member receipts allows associations to deduct deficits from business income subject to a statutory cap. Where a specified association's receipts from members fall short of expenditure incurred solely to protect or advance members' common interest, that shortfall is deductible from the association's income under the head Profits and gains of business or profession; member subscriptions are included but remuneration for specific services is excluded; expenditures deductible elsewhere and capital expenditure are excluded; carry forward and set off rules apply first; and the deduction is subject to an overall statutory cap on allowable reduction of total income.