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itika mehra

articled assistant

202 Points Posted on 10 November 2010

Hey i have a doubt in this que. i am unable to get solution to this question please give me proper soltuion to this question.

Que.

The following details are furnished in respect of Mr. Balyaan and his family members.Determine the Gross total income:

Particulars	Mr.Balyaan	Mrs.Balyaan	Minor child
income as child artist in films			65000
Business income (own)	(45000)
Salary income from Balyaan Ltd.(in which Mr.balyaan holds 25%voting power) @ 3000p.m.		50000
Commision from B&Co.		25000
Interest income	9000	6000	5000

Share of profit from firm B&Co.

(40%)

80000

nil

(10%)

20000

Note:

(1)Mrs.Balyaan possesses B.Com Degree and works as accountant of Balyaan Ltd.

(2)Mrs. Balyaan does not render any services to M/s.B& Co.

(3)
Interst income received by Mrs. Balyaan is from an investment of rs. 40000 gifted br Mr.Balyaan and rs.40000 invested from her own source.

Replies (1)

U S Sharma

glidor@gmail.com

21068 Points Posted on 10 November 2010

1st of all as the child is artist and have his own income, he can file his self return .....65000+5000+20000= 90000/- gross total income ( minus 20000 as firms profit for tax purspose only ) = 70000/- is the childs income, and its to be treated seperate.

2nd Mrs Balyan has no firm income, and have 50% moiney of husband invested for interst, so the calculation will be salary 50000/- + comm 25000 + int 6000 = 81000/-

for tax purpose the same will be 50000 less standard deduction 20000=30000+25000+3000=58000

3rd Mr Balyan has negetive business income so his calculation will be as under

(45000)+9000+80000= 44000

for tax purpose , the interest income of 3000 will get added to his total income from mrs balyan and total would be 47000/-

Note: assumed that the business loss is not speculation loss, or STCG