IPCC TAXATION 1. Section 43B 5M 2. Additional depreciation 5M 3. Section 35 ABB 5M 4. Mr. X is a resident individual.

His Profit and Loss Account for the year ending 31st March 2011 is below Debit Rs. Credit Rs. General Charges 1,06,950 Gross Profit 15,77,580 Insurance 10,500 Commission 20,400 Staff Salary 3,37,680 Rent Received 1,12,500 Donation to Political Party 3,000 Interest on Debentures 75,000 Depreciation 3,76,968 (Net Amount Rs. 67,500 plus TDS Rs. 7,500) Administrative expenses 1,27,500 Agricultural Income 1,35,000 Advance Tax 51,000 Short-Term Profit on sale on Investment 87,000 Net Profit 10,41,882 Dividend from Indian Company 48,000 Total 20,55,480 Total 20,55,480 1. Depreciation has been calculated as per the Income Tax Rules at Rs. 2,25,000. 2. He has deposited Rs. 1,05,000 in a notified scheme under Post Office Time Deposit Rules, 1981 for five year time. 3. One of his life insurance policies matured on 14.6.2010. the sum assured was Rs. 3,00,000 and amount received on maturity was Rs. 4,88,550. 4. Donation to the Political Party represented the contribution made to a Political Party registered under Sec. 29A of the Representation of the People Act, 1951 5. Income Tax Department refunds Rs. 1,27,740 (including interest of Rs. 4,410) which was directly credited in his Personal Savings Account. 6. Bad debts of a business which was discontinued in earlier years, recovered during the year Rs. 45,000. Compute Total Income and Tax Payable thereon by Mr. X for the Assessment Year 2011-2012. 15 M