english ma solve

Here's the solution to the problem in English, calculating the assessable income from business, assessable income from investment, total taxable income, and tax liabilities. a) Assessable Income from Business Step 1: Calculate Assessable Income from Business. We start with the Net Profit as per the Profit & Loss Account and make adjustments for disallowed expenses, non-business income, and stock valuations. Net Profit as per P/L A/c: Rs. 14,94,000 Add: Disallowed Expenses / Non-business Items Salary (paid to non-PAN holder): Rs. 20,000 General Reserve: Rs. 2,50,000 (Appropriation of profit, not an expense) Office Expenses (Donation): Rs. 90,000 (Disallowed as business expense, allowed as a deduction from total income) Office Expenses (Personal health expenses): Rs. 20,000 Repair Expenses (Excess over allowed limit): Rs. 1,70,000 - Rs. 1,20,000 = Rs. 50,000 Miscellaneous Expenses (Trademark purchase): Rs. 70,000 (Capital expenditure, disallowed as revenue expense) Legal Expenses (Suit against tax officer): Rs. 13,000 (Disallowed) Depreciation (Excess charged in P/L): Rs. 20,000 Life Insurance Premium: Rs. 12,000 (Personal expense) Health Insurance Premium (for proprietor): Rs. 37,000 (Personal expense) Loss on sale of business assets: Rs. 36,000 (Can only be set off against gain from sale of business assets) Opening Stock Overvaluation: Rs. 1,80,000 - (Rs. 1,80,0001.20) = Rs. 30,000 (Overvaluation of opening stock reduces profit, so add back) Total Additions: Rs. 20,000 + 2,50,000 + 90,000 + 20,000 + 50,000 + 70,000 + 13,000 + 20,000 + 12,000 + 37,000 + 36,000 + 30,000 = Rs. 6,48,000 Less: Non-business Income / Items Credited to P/L Income Tax Refund (excluding custom duty refund): Rs. 2,00,000 - Rs. 10,000 = Rs. 1,90,000 (Not business income) Closing Stock Overvaluation: Rs. 9,50,000 - (Rs. 9,50,0001.20) = Rs. 1,58,333.33 (Overvaluation of closing stock increases profit, so subtract) Amortization of Trademark (Allowable): Rs. 1,20,0006 years = Rs. 20,000 Total Subtractions: Rs. 1,90,000 + 1,58,333.33 + 20,000 = Rs. 3,68,333.33 Adjusted Business Income: Rs. 14,94,000 + 6,48,000 - 3,68,333.33 = Rs. 17,73,666.67 Less: Brought Forward Business Loss (3rd year): Rs. 1,50,000 Assessable Income from Business: Rs. 17,73,666.67 - 1,50,000 = Rs. 16,23,666.67 a) Assessable Income from Business: Rs. 16,23,666.67 b) Assessable Income from Investment Step 2: Calculate Assessable Income from Investment. We identify all investment-related income items. Rent from staff quarter: Rs. 2,40,000 Interest on investment: Rs. 40,000 Gain on sales of non-business assets: Rs. 1,40,000 Total Assessable Income from Investment: Rs. 2,40,000 + 40,000 + 1,40,000 = Rs. 4,20,000 b) Assessable Income from Investment: Rs. 4,20,000 c) Statement of Total Taxable Income Step 3: Calculate Total Taxable Income. We sum up all assessable incomes and deduct allowable expenses. Assessable Income from Business: Rs. 16,23,666.67 Assessable Income from Investment: Rs. 4,20,000 Gross Assessable Income: Rs. 16,23,666.67 + 4,20,000 = Rs. 20,43,666.67 Less: Allowable Deductions Donation to tax-exempt institution: Rs. 90,000 (Allowed up to 5% of Gross Assessable Income or Rs. 1,00,000, whichever is less. 5% of Rs. 20,43,666.67 = Rs. 1,02,183.33. So, Rs. 90,000 is fully allowed.) Contribution to CIT (Self): Rs. 1,50,000 (Allowed up to 1/3 of Gross Assessable Income or Rs. 3,00,000, whichever is less. 1/3 of Rs. 20,43,666.67 = Rs. 6,81,222.22. So, Rs. 1,50,000 is fully allowed.) Total Deductions: Rs. 90,000 + 1,50,000 = Rs. 2,40,000 Total Taxable Income: Rs. 20,43,666.67 - 2,40,000 = Rs. 18,03,666.67 c) Total Taxable Income: Rs. 18,03,666.67 d) Tax Liabilities Step 4: Calculate Tax Liabilities. We apply the tax rates for an individual running an industry (unmarried status assumed). Total Taxable Income: Rs. 18,03,666.67 On first Rs. 4,00,000 @ 1\% = Rs. 4,000 On next Rs. 1,00,000 @ 10\% = Rs. 10,000 On next Rs. 2,00,000 @ 20\% = Rs. 40,000 On remaining Rs. (18,03,666.67 - 7,00,000) = Rs. 11,03,666.67 @ 20\% = Rs. 2,20,733.33 Total Tax on Income: Rs. 4,000 + 10,000 + 40,000 + 2,20,733.33 = Rs. 2,74,733.33 Tax on Lottery Income: Lottery Income (Net): Rs. 70,000 Tax Rate: 25\% Tax on Lottery Income: Rs. 70,000 × 25\% = Rs. 17,500 Total Tax Liability: Rs. 2,74,733.33 + 17,500 = Rs. 2,92,233.33 d) Tax Liabilities: Rs. 2,92,233.33 That's 2 down. 3 left today — send the next one.