Following details are provided for 2 (two) individuals Umesh and Suresh for the previous year 2023-24: Name Umesh Suresh Age 50 62 Residential status Resident Non-resident Cross receipt 72,00,000 60,00,000 Through Cash r

CS Executive · Tax Laws and Practice · PYQS · June 2024
Following details are provided for 2 (two) individuals Umesh and Suresh for the previous year 2023-24: Name Umesh Suresh Age 50 62 Residential status Resident Non-resident Cross receipt 72,00,000 60,00,000 Through Cash receipt 47,00,000 27,00,000 Through banking channel 25,00,000 33,00,000 Nature of activity Retail Trade Plying of 3 heavy goods carriages with capacity of 15 tonnes each Brought forward loss Long-term capital loss ₹ 1,00,000 relating to assessment year 2021-22. ₹ 90,000 relating to discontinued business loss of assessment year 2020-21. Compute total income of Umesh and Suresh for the assessment year 2024-25 by applying the relevant presumptive provisions under section 44AD and 44AE, assuming none opted to pay tax under section 115 BAC.

Answer & Explanation:

Computation of Total Income Particulars Section 44AD Section 44AE Name Umesh Suresh Nature of activity Retail trade Plying of heavy goods vehicle Presumptive income @ 6% on ₹ 25,00,000 (Banking Channel) 1,50,000 Presumptive income @ 8% on ₹ 47,00,000 (Cash Receipt) 3,76,000 Presumptive income for 3 heavy goods vehicles of 15 tonnes each @ ₹ 1,000 per tonne per month per vehicle. (15* ₹ 1000 * 3 * 12) 5,40,000 Income as per presumptive taxation 5,26,000 5,40,000 Less: Set off of loss brought forward Not allowed to set-off long term capital loss (90,000) Total Income 5,26,000 4,50,000

Topics: Income Tax

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