16

Firm
Net Profit as per P & L
Add: Salary to Partner
Book Profit

600,000.00
500,000.00
###

Taxable Income

Allowable Salary
270000 On first 3 Lacs
480000 On balance 8 lacs
750000

600,000.00

Proprietor
Net Profit as per P & L
Add: Salary to Proprietor
Add: Interest on Capital

600,000.00
500,000.00
200,000.00
###

18
Net Profit as per P & L
Less: Profit on Sale of Land
Less: Interest on Debentures
Less: Dividend
Add: Salary to R
Add: Intereston Rs capital
Add: Income tax paid
Business Income
Capital Gains
Income from Other Sources
Gross Total Income
Less: Deduction under Chap VI A
Sec 80 C PPF Invt
Net Total Income
Tax on LTCG
Tax on Income (other than LTCG)
Tax
Education Cess
Total Tax Liability

25,000.00
620,000.00
40,000.00
17,000.00
57,000.00
1,710.00
58,710.00

19
Net Profit as per P & L
Less: Profit on Sale of Land
Less: Interest on Debentures
Less: Dividend
Add: Salary Disallowed
Add: Income tax paid
Business Income

368,000.00
-200,000.00 Capital Gains (assumed long term)
-100,000.00 Other Sources
-50,000.00 Exempt
300,000.00
12,000.00
15,000.00
345,000.00
200,000.00
100,000.00
645,000.00

Book Profit
368,000.00
Net Profit as per P&L
-200,000.00 Capital Gains (assumeAdd: Salary to Partners
-100,000.00 Other Sources
Book Profit
-50,000.00 Exempt
130,200.00
15,000.00
on first 3 lakhs
163,200.00
On balance

Capital Gains
Income from Other Sources
Gross Total Income

200,000.00
100,000.00
463,200.00

Net Total Income

463,200.00

Tax on LTCG
Tax on Income (other than LTCG)
Tax
Education Cess
Total Tax Liability

40,000.00
78,960.00
118,960.00
3,568.80
122,528.80

Disallowed

20
Net Profit as per P & L
Less: Profit on Sale of Land
Less: Interest on Debentures
Less: Dividend
Add: Income tax paid
Business Income
Capital Gains
Income from Other Sources
Gross Total Income

368,000.00
-200,000.00 Capital Gains (assumed long term)
-100,000.00 Other Sources
-50,000.00 Exempt
15,000.00
33,000.00
200,000.00
100,000.00
333,000.00

Net Total Income

333,000.00

Tax on LTCG
Tax on Income (other than LTCG)
Tax
Education Cess
Total Tax Liability

40,000.00
39,900.00
79,900.00
2,397.00
82,297.00
21

Partnership Firm
Taxable Income
Less: Int on Capital
Less: Remuneration
Tax Liability
Cess
Total Tax Liability

1,400,000.00
-180,000.00
-822,000.00
398,000.00
119,400.00
3,582.00
122,982.00

Pvt Ltd Co.

Taxable Income

1,400,000.00

Less: Remuneration
Tax
Cess
Total Tax Liability

1,200,000.00
200,000.00
60,000.00
1,800.00
61,800.00

On first 3 Lacs
On balance 8 lacs

d long term)

ook Profit
et Profit as per P&L
dd: Salary to Partners
ook Profit

n first 3 lakhs
On balance

33,000.00
600000
633000

270000
199800

isallowed

d long term)

469800
130200

34
Normal
Taxable Income

320,000.00

44AE
Taxable Income

900,000.00
36

Normal
Taxable Income

1,250,000.00

44AD
Taxable Income

360,000.00

23
Conditions in slide 20 and 21 to be satisfied