I want to know that weather the below mentioned tax calculation is correct or not for partnership firm.
Turnover Rs. 10,00,000 Expenditure with proper bills (Salary, fuel and Hospitality) Rs. 5,00,000 Car Depriciation (Car in the name of firm) Rs. 2,30,000 Intrest on car loan Rs. 73,000 Partner's salary Rs. 1,50,000 Profit Rs. 47,000
Can anyone advise me weather this calculation is correct or not.
**Partner's Salary:** - The partner's salary of Rs. 1,50,000 needs to be deducted from the profit to arrive at the taxable income of the partnership firm.
**Taxable Income:** - Taxable Income = Profit after Depreciation and Interest - Partner's Salary - Taxable Income = Rs. 1,97,000 - Rs. 1,50,000 - Taxable Income = Rs. 47,000
**Verification:** - Profit as per calculation: Rs. 1,97,000 - Partner's Salary: Rs. 1,50,000 - Taxable Income: Rs. 47,000
**Conclusion:** The tax calculation appears correct based on the information provided. The profit before considering depreciation and interest was Rs. 5,00,000. After deducting car depreciation and interest, the profit reduced to Rs. 1,97,000. Deducting the partner's salary of Rs. 1,50,000 from this amount results in a taxable income of Rs. 47,000.
However, please ensure that all deductions and expenses are correctly accounted for according to tax regulations in your jurisdiction. It's advisable to consult with a qualified tax professional or chartered accountant to ensure compliance with local tax laws and to receive personalized advice based on your specific circumstances.
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