R & S are 2 partners of RS & Co. (a partnership firm). The firm was constituted on 01.04.2020 after the death of M (father of R & S) to continue the business of M. M carried a proprietary business of Food Gra

R & S are 2 partners of RS & Co. (a partnership firm). The firm was constituted on 01.04.2020 after the death of M (father of R & S) to continue the business of M. M carried a proprietary business of Food Grains and the accumulated losses up to 31.03.2020 were ₹50,000. Particulars of income and loss of RS & Co. for the P.Y. 2020-21 are: (i) Income from Grain business ₹4,00,000. (ii) Loss in Cloth Business ₹ 60,000 (iii) Speculative business income ₹2,00,000 Against the income of ₹6,00,000 for the year partners of the firm want to set-off the following: (i) Loss in Cloth business of firm ₹60,000 (ii) Business Loss of ₹50,000 of M accumulated up to 31.03.2020 (iii) H.P. loss of R of ₹25,000 (iv) Speculative loss of S of ₹32,000 (v) Disputed sales tax liability of M of the financial year 2016-17 of ₹15,000 which was paid by the firm on 01.12.2020 but not deducted from any of the income given above Determine and find out the income of RS & Co. which will be subject to tax for A.Y. 2021-22: