Barua & Co. is a partnership firm. The firm earned ₹8,00,000 for the year ended 31st March, 2021 from sale of coffee grown and manufactured in India. How much of the income of the firm is chargeable to income tax for
CS Executive · Tax Laws · PYQS · June 2021
Barua & Co. is a partnership firm. The firm earned ₹8,00,000 for the year ended 31st March, 2021 from sale of coffee grown and manufactured in India. How much of the income of the firm is chargeable to income tax for the assessment year 2021-22 ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B), (C). Official source note: Both option B/C may be considered as correct. Question is mentioned sale of Coffee grown and manufactured. If manufacturing is only limited to cured then Correct option is C i.e. ₹ 2,00,000. If manufacturing is related to cured, roasted and grounded, then Option B i.e. ₹ 3,20,000 is correct.
Topics: Income Tax
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