Calculation of taxable income

This query is : Resolved

Kotak Sachinkumar Pravinbhai (Querist)
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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 ?

Satyendra

Satyendra (Expert)
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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.