Compute the income from business and profession of Mr. B for the A.Y. 2021-22 from the information given below : (1) Income from business (before providing for depreciation) of ₹1,00,000 (2) Income from tea business of ₹

CS Executive · Tax Laws and Practice · PYQS · December 2021
Compute the income from business and profession of Mr. B for the A.Y. 2021-22 from the information given below : (1) Income from business (before providing for depreciation) of ₹1,00,000 (2) Income from tea business of ₹50,000 (3) Current year depreciation of ₹20,000 (4) Brought forward business loss (loss incurred six years ago) of ₹10,000.
(A) ₹1,20,000
(B) ₹1,00,000
(C) ₹90,000
(D) ₹87,500

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (C). Official source note: Option A is correct if income from tea business is not related to manufacturing. Option C is correct if income from Tea business is related to growing and manufacturing of Tea.

Topics: Income Tax Act, 1961

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