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Task 3: Amur started his own business in 2015. For the Accounting year ended 31/3/2020, he prepared...

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Accounting

Task 3:
Amur started his own business in 2015. For the Accounting yearended 31/3/2020, he prepared Profit and Loss Account for hisbusiness. He had other incomes such as rental income, interestincome, dividend income and profit on sale of fixed asset. Heincluded all these incomes in his Profit and Loss Account. Also, hehas deducted various expenses while calculating Net Profit in theProfit and loss Account. He is not sure how to calculate theadjusted trading profit for the purposes of taxation.
Question:
As you are dealing taxation issues in his office, prepare areport explaining clearly the various expenses, which aredeductible, and which are not deductible and the treatment ofvarious other incomes included in the Profit and loss account,while calculating the adjusted trading profit for taxpurposes.

Answer & Explanation Solved by verified expert
3.7 Ratings (537 Votes)
ANSWER AS PER INDIANINCOME TAX ACT 1961 As per income tax acta person can have 5 sources of income say income from salaryincome from house propertyincome from business professioncapital gain and income from other sourceAll the income    See Answer
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