PGBP

answered on 22-Apr-24 09:28

In this sum why interest on captial is reduced from Net profit while computing book profit.. interest on capital maximum 12% p.a is disallowed right as per Sec 40(b) then we have to add only right ? Excess 12% is not added because it is not debited to profit and loss account..but y upto12% is reduced...? And in this question allowable working partner salary is Rs .384000..is that is disallowed that is added to net profit for computation of PGBP?

latest answer

If excess interest is debited to PL then excess is added back. However, if interest amount is not taken in PL at all then 12% shall be reduced. Kindly apply the logic. In case of salary to partners, whatever is debited to PL that will be added back. From book profit, if we reduce remuneration allowable to partner we will get the answer of taxable income under PGBP.

Lavi Lavanya

CA Inter

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2

100

Tcs

answered on 22-Apr-24 09:29

Kishore & Sons is a dealer of coal. Its turnover for FY 2022-23 was ₹ 12 crores. The State Government of Hyderabad granted a lease of coal mine to Kishore & Sons on 1.5.2023 and charged ₹ 11 crores for the lease. Kishore & Sons sold coal of ₹ 95 lakhs to M/s BAC Co during PY 2023-24. Turnover of M/s BAC Co during the preceding financial year, ie PY 2022-23, was ₹ 11 crores. The above amounts were credited to Kishore & Sons account in the books of M/s BAC Co on the date of sale. M/s BAC Co furnishes a declaration to Kishore & Sons that coal is to be utilised for generation of power. Details of sale to and payments from M/s BAC Co by Kishore & Sons are as follows: S.No. Date Of Sale Date Of Receipt/Payment Amount (₹) 1 29.05.2023 10.05.2023 35,00,000 2 30.06.2023 10.07.2023 25,00,000 3 25.11.2023 25.10.2023 8,00,000 4 20.01.2024 22.01.2024 15,00,000 5 01.03.2024 15.02.2024 12,00,000 M/s XYZ Ltd purchased coal of ₹ 55 lakhs from Kishore & Sons for trading purpose in July 2023. Turnover of M/s XYZ Ltd during PY 2022-23 was ₹ 12 crores. PAN is duly furnished by the buyer and seller to each other with respect to all the transactions.

latest answer

Perfect answer.

Akash Soni

CA Inter

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5

121

Pgbp

answered on 22-Apr-24 09:29

Mrs. Bhawna, wife of Mr. Sonu, is a partner in a firm. Her capital contribution of ₹ 10 lakhs to the firm as on 31.3.2021 included ₹ 6 lakhs contributed out of gift received from Sonu. On 1.4.2021, she further invested ₹ 2 lakh out of gift received from Sonu. The firm paid interest on capital of ₹ 1,20,000 and share of profit of ₹ 1,00,000 during the F.Y.2021-22. The entire interest has been allowed as deduction in the hands of the firm. Which of the following statements is correct? (a) Share of profit is exempt but interest on capital is taxable in the hands of M₹ Bhawna (b) Share of profit is exempt but interest of ₹ 80,000 is includible in the income of Mr. Sonu and interest of ₹ 40,000 is includible in the income of M₹ Bhawna (c) Share of profit is exempt but interest of ₹ 72,000 is includible in the income of Mr. Sonu and interest of ₹ 48,000 is includible in the income of M₹ Bhawna (d) Share of profit to the extent of Rs 60,000 and interest on capital to the extent of ₹ 72,000 is includible in the hands of Mr. Sonu

latest answer

Right.

Shruthi Nachammai

CA Inter

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5

118

Pgbp

answered on 22-Apr-24 09:55

Mr. Shahid, a wholesale supplier of dyes, provides you with the details of the following cash payments he made throughout the year – - 12.06.2018: loan repayment of ₹ 27,000 taken for business purpose from his friend Kunal. The repayment also includes interest of ₹ 5,000. - 19.08.2018: Portable dye machinery purchased for ₹ 15,000. The payment was made in cash in three weekly instalments. - 26.01.2019: Payment of ₹ 10,000 made to electrician due to unforeseen electric circuit at shop - 28.02.2019: Purchases made from unregistered dealer for ₹ 13,500 What will be disallowance under 40A (3), if any, if Mr. Shahid opts to declare his income as per the provisions of section 44AD?

latest answer

Ok tnku sir

Shruthi Nachammai

CA Inter

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2

107

Pgbp

answered on 22-Apr-24 09:30

is a working partner in a firm on behalf of his HUF and the HUF has contributed ₹3,00,000 as its capital contribution. Apart from this, K has given a loan of ₹ 50,000 to the firm in his individual capacity. The firm pays interest as per market rate of 15% per annum on capital as well as loan. Compute the amount of interest that shall be allowed to the firm while calculating its business income assuming that the interest is authorized by the partnership deed.

latest answer

Limits will apply only for interest paid to partner and not when paid to other person.

Shruthi Nachammai

CA Inter

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1

70

Salary

answered on 27-Apr-24 10:14

Gift given by employer to employee in monetary form of Rs.3000 is taxable or not

latest answer

Perfect.

Lavi Lavanya

CA Inter

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8

103

tax liability

answered on 15-Apr-24 14:43

Sir for salary person we should deduct standand deduction Rs.50000 ,why we not deducted in illustration 2

latest answer

It is already computed.

Alocius Rebiks

CA Inter

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2

89

how to calculate

answered on 15-Apr-24 14:44

K is a working partner in a firm on behalf of his HUF and the HUF has contributed ₹3,00,000 as its capital contribution. Apart from this, K has given a loan of ₹ 50,000 to the firm in his individual capacity. The firm pays interest as per market rate of 15% per annum on capital as well as loan. Compute the amount of interest that shall be allowed to the firm while calculating its business income assuming that the interest is authorized by the partnership deed. (a) ₹ 42,000 (b) ₹ 51,000 (c) ₹ 52,500 (d) ₹ 43,500

latest answer

For interest paid to K, limits will not apply since he is not the partner.

kick buttowski

CA Inter

★ 535

1

144

Tax liability

answered on 15-Apr-24 14:45

Mr. X, a resident 47 years, has salary income (computed) of ₹7,25,000 and agricultural income of ₹ 1,00,000 for the P.Y. 2023-24. Compute his tax liability for A.Y. 2024-25 if he is paying tax under default tax regime under section 115BAC.

latest answer

Apply partial integration and then solve it.

M Anushiya

CA Inter

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5

1K+

House property

answered on 22-Apr-24 09:34

What is the answer for this question.. option b or option c

latest answer

Deduction upto 2L can be claimed by each co owner.

Lavi Lavanya

CA Inter

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6

103