PROBLEMS AND SOLUTIONS

J. State whether the following payments are admissible or not while calculating the
business
income under the provisions of Income Tax Act. (2019)
Loss of stock due to theft by an employee Alo wable expensu
2. Service charged
3. Charities paid all
4. Provision for doubtful debts Diaallowed exp
5. Legal expenses to defined on existing title toa capital aSSet
6. Loss on sale of capital asset Lrnadtntsible
7. O/s GSTor sale tax of previous years paid duringthe year 30,000 Add ms be
8. Gift tax paid nodmikble
9. Professional tax paid Amabla
10. Penalty paid to customs authorities for importing prohibited goods from Austraia 180000
2. State whether the following payments are admissible or not whi•ecalculating the business
income under the provisions of IncomeTax Act. (2018)
1. Discount allowed AdMIT6Le
2. Annual isting fees paidtowardsstockexchange by acompany AdmD
3. LIC premium on director and his amíly member's lifee b l
A. Paymentof liense for obtaining íranchise ynamikkt
5. Depreciation of RS 40000is debited to P,& Laleof sri Ganesh temple which was con_trycted
linsidethe factory premises for the benefit ófèmplovees of the company Admis ble
6,. Interest on loan taken to pay income tax Sngd m
7. Commission of Rs. 50,000 paidto secure a business order macseble
8. Brokerage paid for raising aloan of Rs. 10,00,000 A£msible

3. State wheher the following payments are admissible or not while calculating the business
income under the provisions of Income Tax Act. (2018)
1. A cash payment of 18500 paid to asuppljer of,aw materials on a day which the books were
klosed on account of in-definite strike Admine
Depreciation of S0000 is debited to P& L adc of sri Ganesh temple which was construçted
inside the factory prenises for the benefit of employees of the company Adm iblo
Contribution made by company to staff welfare fund na miuible
Donation oNCF 25000 ngd misle
5. Bonusof R75000was paid to the employee after due date of filing retorn of income n a d i
6. Sales Tax /GST pid AJ m i e
7. Provision for income tax Snodm sCble
Pcmecible
S. Of the sales tax Drovision sales take of R 000 was paid befoe iling the retum of income
. Compensation of &200000 paid toanemployeefor premature temination of his service -fdrible
10,Interest on capital Snad misebLe
of the
4, According to income tax Act Advise an assesscee about admissibility or otherwise
following while computing income from business:
m bte
. Commission of? 40,000 paid to procure ordes for the business
2. Loss due to embezzlement by anemployee nad mssible
34,000 Fnadmielbl
B. Cash expendirure of &

VJAYA COLLEGE, JAYANAGAR, BENGALURU.

&. 7. 6. 5.
Penaltyfor 6. 5. 4.
alculate before A,B
BBookProfit From From Discount
Interest
00000and.
partners and the the
wable C following
following on
partners allowed
importing loan
salary taken
C |3,45,000 ascertainCases for
tion.or sharing ascertain
200000 and prohibitedprompt to
commission pay
and. profits remuneration remuneration
paymentafduesincome
o
mmission 2,60,000 23) goods
e
ation. cqually tax
is
1500000, payable payable
Snatmiible Snadmisib
carrying
000and 190,000 33) Ao
asS as
The on per per nse
the
partnef Sec, Sec,
busines_
l,00,000 |4) 40B, 40B, ble e
s
salarySA
ctively. Book
The
fhns150,000 Profit-8,00,000
net
150000,
profit