Particulars Amount
Income under the head Business or Profession :
1. Income before Tax as per Books 1,000,000
2. Add: Losses relating to other Heads
Loss on sale of Equipment (175,000)
Loss on sale of XYZ Corp Stock (25,000)
Total (200,000) (200,000)
3. Net Income related to BGPB 800,000
4. Add: Expenses accounted for in the books of accounts
but not deductible as per Income Tax Act
Lobbying Expenses 50,000
Expenses for Fines 75,000
Expense related to contingent Liability Adj 75,000
Bad debts transfer to reserve 75,000
Book Depreciation 200,000
Total 575,000 375,000
5. Less: Income included in the books but not
taxable as per IT Act
Proceeds from Life Insurance Corp.
(exempt under Sec.10(10D) (100,000)
6. Less: Tax Depreciation (250,000)
7. Net Income from PGBP 825,000
8. income Under the head Capital gains:
Loss on Sale of XYZ Corp Stock (25,000)
Tax gain on sale of Equipment 25,000
Total 0 0
9. Total taxable Income 825,000
10. Taxes Payable @ 40%+Cess@4% 343,000
Gross Tax Payable (825,000*40%) 330,000
Add: cess @ 4% (330,000*4%) 13,200
Net Tax Liability 343,000
11. Tax Expense 332,800
Current tax 343,000
Deferred Tax (10,200)
Working notes:
1.Calculation of deferred Tax expense
Adjustable Taxable income as per Books
Net taxable Income as per IT Act 825,000
Add: Depreciation diff(250,000-200,000) 50,000
Less: Bad DebtsTransferred to reserve 75,000
Total Adjustable Income 800,000
Tax Liability as per Books 332,800
(800,000@40%+cess@4%)
Deferred tax Asset
Tax liability as per IT Act 343,000
tax Liability as per Books 332,800
Deferred Tax Asset 10,200
Please calculate tacabke income, taxes payable, and tax expense B C D I L M N...
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