PK Fertilizers Ltd. owning a unit located in SEZ and engaged in the production and export of Industrial chemicals, fertilizers, following information were made available of the company for the FY ended 31.03.2024 in the

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · December 2024
PK Fertilizers Ltd. owning a unit located in SEZ and engaged in the production and export of Industrial chemicals, fertilizers, following information were made available of the company for the FY ended 31.03.2024 in the 6th year of its operations : Particulars SEZ Unit Noida Non SEZ Unit Pune Total Total Turnover 15,60,000 14,20,000 29,80,000 Export Turnover 8,32,000 6,86,000 15,18,000 Profit for the year 3,22,000 5,36,000 8,58,000 Brought forward Business Loss (AY 2021-22) 1,86,000 - 1,86,000 Brought Forward Unabsorbed Depreciation (AY 2022-23) - 75,000 75,000 Note : Total turnover and export turnover, both of Non SEZ unit include ₹75,000 and ₹25,000 towards freight and insurance as charged by the entity in the Bill of Entry. From the above information, compute the following for assessment year 2024-25: Net Taxable Income of the company.

Answer & Explanation:

(ii) Computation of Net Taxable Income of the PK Fertilizers Ltd for AY 2024-25 Particulars Amount (₹) Profit for the year (SEZ Unit + Non SEZ Unit) 8,58,000 Less: Brought Forward Losses: (2,61,000) Business Loss - ₹1,86,000 Unabsorbed Depreciation - ₹75,000 Gross Total Income of the Entity 5,97,000 Less: Deduction eligible & allowed under section 10AA (as per above calculation) (85,867) Total Income (Net taxable income) 5,11,133

Topics: Corporate Tax Planning, Income Tax Act, 1961

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