Rose Ltd.

s Income Tax computation - Year of Assessment 2013

Rs 000
1,127

Profit as per account

Add:
Rs 000
302
179

Depreciation
Share issue expenses
Expenditure incurred in the production of
exempt income (See workings below)

470
951
2,078
Less Capital allowances
Dividends not chargeable to tax

240
1,038
1,278
800
120

Chargeable Income
Income tax @ 15%
Workings
Expenditure incurred in the production of exempt income
The following expenses fall within the purview of Section 26(3) of the Act:
Rs 000
Interest on overdraft and short term loans
279
Debenture Interest
514
Management Fees
462
Audit Fees
45
Licences
8
Electricity
1
Printing, postage and stationery
24
Accountancy Fees
17
Directors Fees
175
Secretarial Fees
154
Bank charges
95
Total
1,774
Allowable:
Gross income (excluding exempt income)
Total income (including exempt income) X 1,774
i.e 2,880
3,918
X 1,774
Non-allowable part (1,774 - 1,304)=
470

= 1,304