K is a working partner in a firm on behalf of his HUF and the HUF has contributed ₹3,00,000 as its capital contribution. Apart from this, K has given a loan of ₹ 50,000 to the firm in his individual capacity. The firm pays interest as per market rate of 15% per annum on capital as well as loan. Compute the amount of interest that shall be allowed to the firm while calculating its business income assuming that the interest is authorized by the partnership deed.

Mrs, Shavian, wife of Mr. Anurag, is a partner in a firm. Her capital contribution of ₹5 lakhs to the firm as on 1.4.2023 included ₹3.5 lakhs contributed out of gift received from Anurag. On 10.4.2023, she further invested ₹2 lakhs out of gift received from Anurag. The firm paid interest on capital of ₹ 50,000 and share of profit of ₹ 60,000 during the F.Y.2023-24. The entire interest has been allowed as deduction in the hands of the firm. Which of the following statements is correct?

 Mr. Kunal is a doctor by profession engaged in his medical practice from last 15 years His gross receipts from the profession in FY 2021-22, 2022-23, 2023-24 were ₹2,00,000, ₹16,00,000 and ₹18,50,000 respectively. Further, Kunal follows cash system of accounting. Determine which of the following books of accounts and documents are required to be kept and maintained by Kunal.

(i)      Cash Book

(ii)     Journal

(iii)    Inventory of the stock of drugs, medicines, etc.

(iv)    A daily case register

            Mr. Shahid, a wholesale supplier of dyes, provides you with the details of the following cash payments he made throughout the year –

-            12.06.2013: loan repayment of ₹ 27,000 taken for business purpose from his friend Kunal. The repayment also includes interest of ₹ 5,000.

-            19.08.2013: Portable dye machinery purchased for ₹ 15,000. The payment was made in cash in three weekly instalments.

-            26.01.2014: Payment of ₹ 10,000 made to electrician due to unforeseen electric circuit at shop

-            28.02.2014: Purchases made from unregistered dealer for ₹ 13,500

What will be disallowance under 40A (3), if any, if Mr. Shahid opts to declare his income as per the provisions of section 44AD?

1.               M/s ABC & Co., a firm carrying on business, furnishes the following particulars for the P.Y. 2023-24. Particulars                                                                                                                     ₹

Book profits (before setting of unabsorbed depreciation and brought forward business loss)2,50,000 Unabsorbed depreciation of P.Y.2017-18                                                        1,20,000

Brought forward business loss of P.Y.2022-23                                                                          2,00,000 Compute the amount of remuneration allowable under section 40(b) from the book profit.

1.               Which of the following persons are compulsorily required to get their accounts audited u/s 44AB of the Income-tax Act, 1961?

(i)        An assessee, who has not opted for presumptive taxation and his turnover during the P.Y. is ₹2

crores.

(ii)       A professional whose gross receipts during the previous year amounts to ₹50 lakhs, who declares his

profits and gains from profession u/s 44ADA.

(iii)     An assessee having turnover of ₹1.5 crore, who declares his profits and gains from business u/s 44AD.

(iv)     A lawyer having gross receipts of ₹40 lakhs during the P.Y. who claims his profits and gains from the

legal profession to be 40% of the gross receipts.

(v)       An individual who opts out of the presumptive taxation scheme u/s 44AD during the P.Y., however,

his total income for the said year is ₹2,00,000.

 Mr. Raja, a proprietor, commenced operation of the business of a new three star hotel in Mumbai on 1.7.2023. He had made a total investment of ₹ 7.58 crores till 30.6.2023. Out of total investment of ₹ 7.58 crores, ₹ 1.58 crores was used for purchase of land in P.Y.2022-23. ₹ 4.70 crores was used for constructing Hotel and balance of ₹ 1.30 used for purchasing the furniture in P.Y. 2023-24. He wants to avail the benefit of deduction under section 35AD as he satisfied with all the conditions prescribed u/s 35AD. His profit and gains from the business for P.Y. 2023-24 is ₹ 50 lakhs before claiming deduction u/s 35AD. He wants to file his income-tax return on 12.12.2023. How much deduction Mr. Raja can claim for A.Y. 2024-25 and the losses which he can carry forward to A.Y. 2025-26?

          M/s ABC, an eligible assessee, following mercantile system of accounting, carrying on eligible business under section 44AD provides the following details:

♦            Total turnover for the financial year 2023-24 is ₹ 130 lakh

♦             Out of the above:

-          ₹ 25 lakh received by A/c payee cheque during the financial year 2023-24;

-          ₹ 50 lakh received by cash during the financial year 2023-24;

-          ₹ 25 lakh received by A/c payee bank draft before the due date of filing of return;

-          ₹ 30 lakh not received till due date of filing of return.

What shall be the amount of deemed profits of M/s ABC under section 44AD(1) for A.Y. 2024-25?

Mr. A engaged in the retail trading of toys, had acquired a motor vehicle - A for ₹ 4 lakhs on 20.08.2021, put to use on 04.10.2022 and another motor vehicle - B for ₹ 3 lakhs on 19.02.2022, put to use on 03.09.2022. On 01.04.2022, Mr. A took a vehicle loan of ₹ 5 lakhs at 10% p.a. and acquired the motor vehicle - C for ₹ 5 lakhs on 31.05.2022, put to use on 30.06.2022. On 30.07.2023 the same vehicle - C was sold for ₹ 5.50 lakhs and reacquired it back on 28.08.2023 for ₹ 6 lakhs. Assuming the above mentioned assets are the only assets in the block of assets for Mr. A, what would be its total depreciation claim under section 32 for P.Y. 2023- 24?