Calculation of taxable income
This query is : Resolved
01 August 2011
Mr. X is a New Partnership Firm having follwing position:
ASSETS
Land construction Rs. 30 lacs
Building construction Rs. 60 lacs
Total Rs. 90 lacs
LIABILIIES
Partners Capital Rs. 50 lacs
Bank Loan RS. 40 lacs
Total Rs. 90 lacs
For some reason Firm could not start Business & so whole unit is rented out for Rs. 24 lacs p.a.
interest on capital Rs. 6 lacs
interest on Bank loan Rs. 4.8 lacs
Municipal Tax Rs. 0.5 lacs
Total Rs. 11.30 lacs
How total income of the firm can be arrived at ?
ASSETS
Land construction Rs. 30 lacs
Building construction Rs. 60 lacs
Total Rs. 90 lacs
LIABILIIES
Partners Capital Rs. 50 lacs
Bank Loan RS. 40 lacs
Total Rs. 90 lacs
For some reason Firm could not start Business & so whole unit is rented out for Rs. 24 lacs p.a.
interest on capital Rs. 6 lacs
interest on Bank loan Rs. 4.8 lacs
Municipal Tax Rs. 0.5 lacs
Total Rs. 11.30 lacs
How total income of the firm can be arrived at ?
01 August 2011
Dear Pravinbhai,
Income from rent taxable under the head Income from house property and Taxable accordingly.
In This case take benefit of Interest cost on bank borrowing, Manciple Tax (if paid during the year) and Standard deduction of 30%.
No other expenditure are admissible for calculating Tax liabilities.
Income from rent taxable under the head Income from house property and Taxable accordingly.
In This case take benefit of Interest cost on bank borrowing, Manciple Tax (if paid during the year) and Standard deduction of 30%.
No other expenditure are admissible for calculating Tax liabilities.
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