Calculation of book profit
This query is : Resolved
19 August 2012
In computation of Book Profit ,which expenses and incomes should be allowed and Disallowed for providing Remuneration to Partners as per calculation given in sec 40(b)?
What if ,
Net Profit as per books=1,00,000
It is arrived after deducting/adding following expenses and Incomes-
1.Donation -5,000
2.Loss on sale of Asset -25,000
3.Profit on sale of Investment -15,000
4.TDS not paid till the due date of Return filing-2,000
5.Depreciation as per Books-34,500
6.Dividend of Rs. 5,000
Note:
1.No remuneration is already paid to partners and interest is paid subject to 12% only.
2.Depreciation as per IT Act is Rs.43,500
3.Unabsorbed Depreciation -75,000
4.Brought Forward Business Loss -1,35,000
Please provide maximum allowable remuneration as per sec 40(b).
What if ,
Net Profit as per books=1,00,000
It is arrived after deducting/adding following expenses and Incomes-
1.Donation -5,000
2.Loss on sale of Asset -25,000
3.Profit on sale of Investment -15,000
4.TDS not paid till the due date of Return filing-2,000
5.Depreciation as per Books-34,500
6.Dividend of Rs. 5,000
Note:
1.No remuneration is already paid to partners and interest is paid subject to 12% only.
2.Depreciation as per IT Act is Rs.43,500
3.Unabsorbed Depreciation -75,000
4.Brought Forward Business Loss -1,35,000
Please provide maximum allowable remuneration as per sec 40(b).
CA VISHNU GAVKARE
(Expert)
20 August 2012
TDS is of which expenses?
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