Mr. Ashok, aged 61 years, a resident individual, engaged in a wholesale business of stationary products provides you the following information for…

Computation of total income of Mr. Ashok for the A.Y.2024-25 Particulars Particulars ₹ Income from house property Arrears of rent (Taxable under section 25A even if Mr. Ashok is not the owner of the house property in the P.Y.2023-24) 1,35,000 Less: Deduction@30% 40,500 94,500 Profits and gains of business or profession Income from wholesale business Net profit as per books 6,60,000 Add: Amount debited to P & L A/c, not allowable as deduction - Depreciation as per books 34,000 - Disallowance of municipal taxes paid for the second half-year under section 43B, since the same was paid after the due date of filing of return of income (₹ 7,000/2) 3,500 - Disallowance under section 40A(3) in respect of salary paid in cash since the same exceeds - 10,000 22,000 - 20% of car expenses for personal use 8,000 7,27,500 Less: Depreciation allowable (Note 1) 1,96,800 5,30,700 Income from firm Share of profit from the firm is exempt under section 10(2A) - Interest on capital from partnership firm (Note 2) 1,20,000 Salary as working partner fully taxable 1,00,000 2,20,000 7,50,700 Income from other sources Interest on bank fixed deposit (Gross) [₹ 49,500 x 100/90] 55,000 Interest on saving bank account 13,300 Interest on income-tax refund 1,400 69,700 Gross total income 9,14,900 Less: Deduction under Chapter VIA (Note 3) 2,65,000 Total Income 6,49,900 Computation of tax liability of Mr. Ashok for the A.Y.2024-25 Particulars ₹ Upto 3,00,000 Nil 3,00,001 - 5,00,000 [i.e.,2,00,000@5%] 10,000 5,00,001 - 6,49,900 [i.e.,1,49,900@20%] 29,980 39,980 Add: Health and Education cess@4% 1,599 Tax liability 41,579 Tax liability (Rounded off) 41,580 Notes: (1) Depreciation allowable under the Income-tax Rules, 1962 Opening WDV/ Actual cost Rate Depreciation Block 1 Computers 2,40,000 40% 96,000 Computer printer 1,50,000 40% 60,000 Block 2 Motor Car 6,80,000 15% 51,000 [50% of 15% is allowable, since it is put to use for less than 180 days] 40,800 Less: 20% disallowance for personal use 10,200 1,96,800 (2) Only to the extent the interest is allowed as deduction in the hands of the firm, the same is includible as business income in the hands of the partner. Since interest is paid in accordance with partnership deed, maximum interest allowable as deduction in the hands of the firm is 12% p.a. Therefore, interest @12% p.a. amounting to 1,20,000 would be treated as the business income of Mr. Ashok. (3) Deduction under Chapter VI-A Particulars Particulars ₹ Under section 80C LIP for independent son 60,000 PPF paid in wife's name 70,000 1,30,000 Under section 80D Health insurance premium taken for himself is fully allowable as deduction, since he is a senior citizen 35,000 Under section 80G Contribution towards PM National Relief Fund eligible for 100% deduction without any qualifying limit 50,000 Under section 80TTB Interest on deposits in case of senior citizen, restricted to 50,000 Total deduction 2,65,000