Work out the taxable income and the tax payable thereon for A.Y. 17-18 of a partnership firm engaged in retail trade business from the following particulars : (i) Net profit of ₹3,65,000 arrived at after debit of interes

Computation of Taxable Income & Tax Liability of Partnership Firm for Assessment Year 2017-18 Particulars Amount (INR) Amount (INR) Net Profit as per Profit and Loss account 3,65,000 Add: Interest on Capital 1,80,000 Less: Interest on capital allowable @ 12% on ₹10,00,000 (1,20,000) Add: Salaries to Partners 4,80,000 Book Profits 9,05,000 Admissible amount of Salary as a percentage of Book Profits or actual paid whichever is lower i) 90% of ₹3,00,000 = ₹2,70,000 4,80,000 ii) 60% of ₹6,05,000 = ₹3,63,000 Total = ₹6,33,000 Or Actual Paid ₹4,80,000 Whichever is lower Taxable Income 4,25,000 Tax Payable @ 30.9% 1,31,325 Tax Payable (rounded off) 1,31,330