Firm's business income 24.295 Computation of firm's total income Profits & Gains : Business Profit Capital Gains STC Gains on car LTC Gain on Investment Total Income 800 400 1.200 25.495 80 Rounded off to 25,500 Firm's Tax liability : Tax on LTCG of 400 @ 20% 7.530 Tax @ 30% of 25,500 - 400] 7,610 Total 228 Add : education cess @ 3% of tax 7,838 Tax payable Tax payable rounded off * 7,840 Treatment of share of income and remuneration Share of income, remuneration and interest received by partners from above firm is fully exempted. Z24 ILLUSTRATION 15 XYZ, is a partnership firm assessed u/s 185 with X, Y and Z as partners sharing profits and losses equally. Z being the wife of X, carries on the business of Commission Agent. For the previous year ended 31st March 2015 the Profit and Loss Account of the firm discloses a net profit of 2,00,000. The following information is available on examination of the Books and Records: (1) Z became a partner by investing capital from her own resources, her husband having contributed no part of it directly or indirectly. She is actively engaged in the business. (ii) Salary of 6,000 was paid to Y. (iii) Interest of 2,400 and 2,000 was paid to X and Z on their respective capital. (iv) Z's godown was rented by the firm for which rent of 3,000 was paid to her. (V) Tax of * 10,000 paid during the year by the firm on a non-resident principal's account for whom it was treated as agent, was written off as it become irrecoverable. The firm claims it either as an item of expenditure or as a bad debt. The amounts noted in item no. (ii), (iii), (iv) and (v) above were debited to the Profit and Loss Account. X has 30,000 as his individual income. Y has computed income of 17.000 from house property, Z's only other source of income is the godown let out to the firm, the assessable income where from for the year is 31,000. Determine