Mr. Chatterji derives income from estates in Coffee, Rubber and Tea. He has also a nursery wherein he grows plants and sells for the previous year ending 31st March, 2019. From the following particulars of income from estates and sale of plants, compute the taxable income for the Assessment Year 2019-20. ₹ (i) Manufacture of Rubber 8,00,000 (i) Manufacture of Coffee grown and cured 2.00.000 (111) Manufacture of Tea 4,00,000 (iv) Sale of Plants from Nursery 1,50,000
Answers
Answer:
Taxable Income = ₹ 4,90,000
Explanation:
COMPUTATION OF TAXABLE INCOME (for the Assessment Year 2018-19)
(i) Manufacture of coffee grown and cured (25% of income shall be business income) 50,000
ii) Manufacture of rubber (35% of income shall be business income) 2,80,000
(iii) Manufacture of tea (40% of income shall be business income). 1,60,000
(iv) Sale of plants from nursery nursery
Exempt
Taxable Income = 50,000 + 2,80,000 + 1,60,000
Taxable Income = ₹ 4,90,000
Taxable Income:
Taxable income refers to an individual's or business' compensation that is used to determine tax liability. The total income amount or gross income is used as the basis to calculate how much the individual or organization owes the government for the specific tax period.