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
Income Tax Computation
| Particulars | Amt |
| MONTHLY TURNOVER | 400000 |
| ANNUAL TURNOVER | 4800000 |
| PROFIT AND GAIN OF BUSINESS AND PROFESSION | 384000 |
| (MINIMUM 8% OF TURNOVER) | |
| INCOME FROM OTHER SOURCES | 5000 |
| GROSS TOTAL INCOME | 389000 |
| Less | |
| DEDUCTIONS | 0 |
| NET TOTAL INCOME | 389000 |
| TAX | 6950 |
| REBATE | 0 |
| NET TAX | 6950 |
| CESS | 278 |
| TAX+ CESS | 7228 |
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
Income Tax Computation
| Particulars | Amt |
| MONTHLY TURNOVER | 400000 |
| ANNUAL TURNOVER | 4800000 |
| PROFIT AND GAIN OF BUSINESS AND PROFESSION | 384000 |
| (MINIMUM 8% OF TURNOVER) | |
| INCOME FROM OTHER SOURCES | 50000 |
| GROSS TOTAL INCOME | 434000 |
| Less | |
| DEDUCTIONS | 0 |
| NET TOTAL INCOME | 434000 |
| TAX | 9200 |
| REBATE | 0 |
| NET TAX | 9200 |
| CESS | 368 |
| TAX+ CESS | 9568 |
| Less | |
| TDS | 5000 |
| Net Tax Payable | 4568 |
Note:-
TDS under Section 194A is applicable if Interest paid by bank on FD is more than 10000
Read more
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
Income Tax Computation
| Particulars | Amt |
| MONTHLY TURNOVER | 400000 |
| ANNUAL TURNOVER | 4800000 |
| PROFIT AND GAIN OF BUSINESS AND PROFESSION | 384000 |
| (MINIMUM 8% OF TURNOVER) | |
| INCOME FROM OTHER SOURCES | 62000 |
| GROSS TOTAL INCOME | 446000 |
| Less | |
| DEDUCTIONS | 10000 |
| NET TOTAL INCOME | 436000 |
| TAX | 9300 |
| REBATE | 0 |
| NET TAX | 9300 |
| CESS | 372 |
| TAX+ CESS | 9672 |
| Less | |
| TDS | 5000 |
| Net Tax Payable | 4672 |
Note:-
TDS under Section 194A is not applicable on Interest on Savings On Interest on Savings,Deduction available under Section 80TTA of Maximum 10000
Read more
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
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
| Turnover | 1000000 | 5000000 | 8000000 | 25000000 |
| PGBP (PROFIT AND GAIN OF BUSINESS AND PROFESSION )@ 8% of Turnover | 80000 | 400000 | 640000 | Not Applicable |
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
| TURNOVER | 1000000 | 5000000 | 8000000 | 25000000 |
| PROFIT AND GAIN OF BUSINESS AND PROFESSION | 80000 | 400000 | 640000 | Not Applicable |
| (MINIMUM 8% OF TURNOVER) | ||||
| GROSS TOTAL INCOME | 80000 | 400000 | 640000 | |
| TAX | 0 | 7500 | 40500 | |
| REBATE | 0 | 0 | 0 | |
| NET TAX | 0 | 7500 | 40500 | |
| CESS | 0 | 300 | 1620 | |
| TAX+ CESS | 0 | 7800 | 42120 |
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