Mr. Rajesh is a working partner in M/s Sunflower Associates, a partnership firm. Mr. Rajesh has contributed 15 lakhs as capital in the firm.…

Computation of total income of Mr. Rajesh for the A.Y. 2024-25 under default tax regime under section 115BAC Particulars Amount (in ₹) I Profits and gains of business and profession Income from firm M/s Sunflower Associates Interest on capital@13% p.a. on 15 lakhs, restricted to 12%, which is the maximum deduction allowable in the hands of the firm 1,80,000 Salary to Mr. Rajesh as a working partner, which is allowable as deduction in the hands of firm (₹ 20,000 x 12) 2,40,000 4,20,000 Profit from SEZ unit Net profit from SEZ unit 7,50,000 Income from warehousing facility for storage of edible oil Net profit as per profit and loss account 7,50,000 Less: Income credited to profit and loss account but taxable under the head 'Income from Other Sources' Interest on savings bank A/c with post office 15,000 Interest on fixed deposit with SBI 20,000 Dividend from Indian companies (Gross) 32,000 6,83,000 Add: Payments not allowable as deduction Advance income-tax paid disallowed u/s 40(a)(ii) 1,00,000 Personal drawings disallowed u/s 37 70,000 Purchase of building 10,00,000 18,53,000 Less: Depreciation on building [₹ 10,00,000 x 10%] 1,00,000 17,53,000 II Income from Other Sources Interest on savings bank A/c with post office 15,000 Less: Exempt under section 10(15) 3,500 11,500 Interest on fixed deposit with SBI 20,000 Dividend from Indian companies (Gross) 32,000 63,500 Gross Total Income/ Total Income [No deduction under section 80C, 80TTA and 10AA would be allowable] 29,86,500 Computation of tax payable under default tax regime for A.Y. 2024-25 ₹ ₹ Tax on total income of 29,86,500 On first - 3,00,000 Nil 3,00,001 - 6,00,000 [@5% of 3lakhs] 15,000 6,00,001 - 9,00,000 [@10% of 3lakhs] 30,000 9,00,001 - 12,00,000 [@15% of 3lakhs] 45,000 12,00,001 - 15,00,000 [@20% of 3lakhs] 60,000 15,00,001 - 29,86,500 [@30% of 14,86,500] 4,45,950 5,95,950 Add: Health and Education cess @4% 23,838 6,19,788 Less: Advance income-tax paid 1,00,000 Tax payable 5,19,788 Tax Payable (Rounded off) 5,19,790 Computation of adjusted total income and AMT of Mr. Rajesh for A.Y. 2024-25 Particulars ₹ Total Income (computed above as per regular provisions of income tax) 28,01,500 Add: Deduction under section 10AA 1,25,000 Adjusted Total Income 29,26,500 Alternative Minimum [email protected]% 5,41,403 Add: Health and education cess@4% 21,656 Total tax liability 5,63,059 Less: Advance income-tax paid 1,00,000 Tax payable 4,63,059 Tax payable (rounded off) 4,63,060 Since alternate minimum tax payable is less than the regular income-tax payable, tax payable under normal provisions of the Act is 5,79,070.