BUSINESS TAXATION

NAME : SHARATH J
CLASS : 5TH B.COM (H)
COMPUTATION OF INCOME FROM PARTNERSHIP
FIRM
• 1. computation of book profit
• 2. computation admissible remuneration to partners.
• 3. computation of taxable income from business/ profession.
 COMPUTATION OF INCOME FROM PARTNERSHIP
FIRM
Particulars Amt Amt
Net profit as per P/l a\c ***
(+) Inadmissible expenses ***
Interest on capital in excess of 12% ***
Remuneration to partners to p\l a\c ***
***
(-) Admissible expenses
Not debited to p\l a/c earlier ***
All other incomes ***
***
Book profit
COMPUTATION OF INCOME FROM PARTNERSHIP
FIRM
(-)remuneration to working partners loss or profit (150000)
a) 90% of first book profit up to 3,00,000 ***
b) 60% of remaining book profit ***
Actual remuneration *** ***
income from business ***
INADMISSIBLE EXPENSES

• Family planning expenses

• Fines and penalties
• Interest on capital
• Illegal expenses
• Speculation losses
• Contribution to staff welfare fund etc.
THANK YOU