Sairam Ltd., engages in diversified activities, earned a profit of ₹14,50,000 after debit/credit of the following items to its statement of profit and loss account for the year ended on 31.3.2025: Items debited to Statem

Answer 5(i) Computation of Total Income of Company for the A.Y. 2025-26 Particulars ₹ ₹ Profit as per Statement of Profit & Loss Account 14,50,000 Add: Items disallowed/considered separately Provision for loss of subsidiary (Since it is not wholly and exclusively for the purpose of business of the assessee] Provision for Income Tax (disallowed u/s 40(a)(ii)] Interest on deposit credited on 31.3.2025 and tax deducted in April 2025 which was deposited on 31.7.2025 [Not allowed u/s 40(a)(ia) @30%] Depreciation debited to statement of profit and loss account (only depreciation calculated as per the Income tax Rules, 1962 is allowed as deduction) 60,000 1,10,000 30,000 3,50,000 5,50,000 20,00,000 Less: Items credited but not includible under business income Income from UTI, since it is not a business income. 95,000 Long term capital gain on sale of equity shares on which securities transaction tax was paid, since it is not a business income. 2,50,000 (3,45,000) 16,55,000 Less: Depreciation (allowable as per the Income tax Rules, 1962) (2,80,000) 13,75,000 Less: Set-off of brought forward business loss and unabsorbed depreciation Brought forward business loss u/s 72 4,20,000 Brought forward depreciation u/s 32 6,40,000 (10,60,000) Income from Business 3,15,000 Capital Gains Long term capital gain on sale of equity shares on which securities transaction tax paid at the time of acquisition and sale 2,50,000 Income from Other Sources Income from units of UTI 95,000 Total Income 6,60,000