Compute taxable income of a trading firm from the following details relating to the previous year 2020-21: Net loss before interest and salary paid to partners ₹11,000 Interest paid to partner @ 12% p.a. ₹20,000 Salary p

CS Executive · Tax Laws and Practice · PYQS · June 2021
Compute taxable income of a trading firm from the following details relating to the previous year 2020-21: Net loss before interest and salary paid to partners ₹11,000 Interest paid to partner @ 12% p.a. ₹20,000 Salary paid to each of the two partners @ ₹2,500 p.m. ₹60,000 The firm has no other income under any head.
(A) ₹69,000
(B) ₹91,000
(C) (-) ₹31,000
(D) (-) ₹91,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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