Apart from Business income,a businessman may have some other income like Interest Income on FD/Savings etc

All these are added while calculating Gross Total Income of person 

 

SUMMARY

INCOME OF BUSINESSMAN

=

PGBP INCOME

 (8% of Turnover --FOR CASH TURNOVER

  +

  6% of Turnover --FOR BANK TURNOVER)

+

Income from Other Sources

(Interest Income on FD+Interest Income on Savings)

=

GROSS TOTAL INCOME

 

Example 1A
Suppose a person has a small chemist business with monthly cash turnover of 400000 per month. He has also Interest Income of FD of 5000
What will be TDS deducted by company if

View Answer

 Example 1B

Suppose a person has a small chemist business with monthly cash turnover of 400000 per month. He has also Interest Income of FD of 50000 on which Bank has deducted 5000 TDS
What will be TDS deducted by company if

View Answer

Note:-
TDS under Section 194A is applicable if Interest paid by bank on FD is more than 10000
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Example 1C
Suppose a person has a small chemist business with monthly cash turnover of 400000 per month. He has also Interest Income of FD of 50000 on which Bank has deducted 5000 TDS
He also has interest Income of 12000 on Savings What will be TDS deducted by company if 

View Answer

Note:-
TDS under Section 194A is not applicable on Interest on Savings On Interest on Savings,Deduction available under Section 80TTA of Maximum 10000
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Example 2

Find tax in following cases

Particulars Case 1 Case 2 Case 3 Case 4 Case 5
CASH TURNOVER OF BUSINESS 5000000 5000000 5000000 5000000 5000000
INTEREST INCOME ON FD 4000 4000 40000 40000 0
INTEREST INCOME ON SAVINGS 3000 13000 13000 0 13000
View Answer
  1. Practical Income Tax
  2. Income Tax for Small Business

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.