Income tax by a proprietership firm

Indiatrainer (Head) (61 Points)

31 January 2013  

Hi, 

 

My yearly income and expenses are  as follows:

 

Income

1- X-Lakh from my own prorpietership firm (dealing in training to students and professionals)

2- Y Lakhs as a salary which I get from a company where I work part-time.

Also Assume that:   2<(X + Y)<10 lakh 

 

Expenses 

1- From my firm's income X, I have to give 2 lakh as salary to one staf. 

2- From my entire salary I have to support my family and bear personal expenses

 

 

Net earnings (or saving): (X-2) + (Y-Y)= X-2

 

My question is what is my taxable income; 

Is it (X+Y-2) ,

OR

is it (X+Y)?

 

Thanks and regards