B Com Exam > B Com Questions > (a) Mr. A has business profit of Rs. 3,45,000...
Start Learning for Free
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ?
Most Upvoted Answer
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 a...
(a) Calculation of Tax Liability for Mr. A
- Business Profit: Rs. 3,45,000
- Share of profits from AoP: Rs. 8,000
- Total Income: Rs. 3,53,000 (3,45,000 + 8,000)
- As per the Income Tax Act, the basic exemption limit for an individual is Rs. 2,50,000. Therefore, Mr. A's taxable income will be Rs. 1,03,000 (3,53,000 - 2,50,000).
- Tax liability for individuals having taxable income between Rs. 2,50,000 and Rs. 5,00,000 is 5% of the amount exceeding Rs. 2,50,000. Hence, Mr. A's tax liability will be Rs. 2,650 (5% of Rs. 1,03,000).
(b) Impact of 1/2 Share from AoP on Mr. A's Tax Liability
- Total Income: Rs. 2,47,000
- Share of profits from AoP: Rs. 80,000
- As per the Income Tax Act, the basic exemption limit for an individual is Rs. 2,50,000. Since Mr. A's individual income is less than the basic exemption limit, his entire income will be exempt from tax. However, the share of profits from AoP will be added to his income for the purpose of calculating tax liability.
- Tax liability for individuals having taxable income between Rs. 2,50,000 and Rs. 5,00,000 is 5% of the amount exceeding Rs. 2,50,000. Hence, Mr. A's tax liability will be Rs. 1,500 (5% of Rs. 30,000).
- Therefore, the share of profits from AoP will not have any impact on Mr. A's tax liability since his individual income is below the basic exemption limit.
Conclusion:
- In case (a), Mr. A's tax liability is Rs. 2,650 since his total income exceeds the basic exemption limit.
- In case (b), Mr. A's tax liability is Rs. 1,500 since his individual income is below the basic exemption limit, and the share of profits from AoP does not have any impact on his tax liability.
- Business Profit: Rs. 3,45,000
- Share of profits from AoP: Rs. 8,000
- Total Income: Rs. 3,53,000 (3,45,000 + 8,000)
- As per the Income Tax Act, the basic exemption limit for an individual is Rs. 2,50,000. Therefore, Mr. A's taxable income will be Rs. 1,03,000 (3,53,000 - 2,50,000).
- Tax liability for individuals having taxable income between Rs. 2,50,000 and Rs. 5,00,000 is 5% of the amount exceeding Rs. 2,50,000. Hence, Mr. A's tax liability will be Rs. 2,650 (5% of Rs. 1,03,000).
(b) Impact of 1/2 Share from AoP on Mr. A's Tax Liability
- Total Income: Rs. 2,47,000
- Share of profits from AoP: Rs. 80,000
- As per the Income Tax Act, the basic exemption limit for an individual is Rs. 2,50,000. Since Mr. A's individual income is less than the basic exemption limit, his entire income will be exempt from tax. However, the share of profits from AoP will be added to his income for the purpose of calculating tax liability.
- Tax liability for individuals having taxable income between Rs. 2,50,000 and Rs. 5,00,000 is 5% of the amount exceeding Rs. 2,50,000. Hence, Mr. A's tax liability will be Rs. 1,500 (5% of Rs. 30,000).
- Therefore, the share of profits from AoP will not have any impact on Mr. A's tax liability since his individual income is below the basic exemption limit.
Conclusion:
- In case (a), Mr. A's tax liability is Rs. 2,650 since his total income exceeds the basic exemption limit.
- In case (b), Mr. A's tax liability is Rs. 1,500 since his individual income is below the basic exemption limit, and the share of profits from AoP does not have any impact on his tax liability.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ?
Question Description
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ?.
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ?.
Solutions for (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? defined & explained in the simplest way possible. Besides giving the explanation of
(a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ?, a detailed solution for (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? has been provided alongside types of (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? theory, EduRev gives you an
ample number of questions to practice (a) Mr. A has business profit of Rs. 3,45,000 and received Rs. 8,000 as 1/86 share of profits of an association of persons during the previous year ending March 31, 2019. Calculate his tax liability. (b) What difference it will make if total income of A is Rs. 2,47,000 and his 1/2 share from AoP(which has no such member whose individual income exceeds maximum exempted limit i.e., Rs. 2,50,000) is Rs. 80 000 ? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup