Answer:-
COMPUTATION OF TAXABLE INCOME
Particulars | Amount ($) | Amount ($) |
Annual gross receipt | 74000000 | |
less:Business Interest expense (W.N-1) | 9300000 | |
Taxable income | 64700000 |
Working Notes;
W.N-1
Calculation of deduction: This limit equals to sum of
Business Income and 30% of Adjusted total income
therefore business income is $3000000 and Adjusted Total Income is 6300000 (30% of 21000000) which makes a total of $9300000
W-N 2
Calculation of amount to be carried forward: Business Interest expense less deduction allowed
i.e $11000000-$9300000= $1700000
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