solve it plzzzzz( very urgent)

466 views 2 replies

A firm with A, B and C as equal partners , furnished following information for the previous year 2008-2009.

profit from business ( after deducting the following amounts)                              181000

!)SALARY to A                                                                                                                9000

2) Interest paid for non payment of sales tax                                                          5000

3) interest on capital @ 12%

  A                                 5000

B                                     4000

C                                     3000                                                                             12000

 

4)   donation to university                                                                                         2000

5)      donation to a scientific research association                                                  10500

 (and  after taking account the following incomes)

a )    long term capital gains                                                                                      20000

b) interest on securities(gross)                                                                               29000

c)income from house property (computed)                                                             14000

d) Dividends(gross)                                                                                                      10500

 

 

compute the taxable income of the firm and allocate it amongest the partners , the fim fulfills the conditions of sec. 184.

Replies (2)

 

Computation of taxable income of Firm        
Particulars   Amount Amount  
Income From House property (Computed)     14000  
Income From PGBP        
Net profit as per p&L account   181000    
ADD: Dissallowed expenses        
Interest on non payment of sales Tax (Note 1)   5000    
Donation to unversity   2000    
Less: Allowed Expenses        
(125% of 10500) (Note2)   -2625    
Less : income treated under other head        
LTCG   -20000    
Interest on secutities   -29000    
Income from House property   -14000    
Dividend   -10500    
Income From PGBP     111875  
Income From Capital Gain        
LTCG   20000    
Income From Capital Gain     20000  
Income from other sources        
Interest on securities   29000    
Dividend (Note-3) 10500      
Exempt under section 10(34) -10500 0    
Income from other sources     29000  
Gross Total Income     174875  
Less Deduction Under Chapter VI A        
Deduction under section 80G (Note 4)   1000 -1000  
Net Taxable income     173875  
         
Note-1        
Interest is allowed only if it is part of sales tax liability      
         
Note 2        
IF an assesse made contribution to scintific reasrech then eligible for 125% of amount paid
100% already taken as per section 35(2A) of income tax Act    
         
Note 3        
It is assumed that dividend from indian company      
         
Note 4        
It is assumed that donation made to approved univerisity and eligible for 50% of  full amount
GTI 174875      
Less: LTCG -20000      
Adjusted GTI 154875      
10% of Adjusted GTI 15487.5      
Actual donation 2000      
Maximum permisible donation 2000      
50% of max donation 1000      

it is assumed that interest on capital are complied with section 40b

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details