R & S are 2 partners of RS & Co. (a partnership firm). The firm was constituted on 01.04.2022 after the death of M (father of R & S) to continue the business of M. M carried a proprietary business of Food Grains and the accumulated losses up to 31.03.2022 were 50,000. Particulars of income and loss of RS & Co. for the P.Y. 2022-23 are:
(i) Income from Grain business 4,00,000
(ii) Loss in Cloth Business 60,000
(iii) Speculative business income 2,00,000
Against the income of Rs 6,00,000 for the year partners of the firm want to set- off the following:
(i) Loss in Cloth business of firm Rs. 60,000
(ii) Business Loss of Rs 50,000 of M accumulated up to 31.03.2022.
(iii) H.P. loss of R of Rs 25,000.
(iv) Speculative loss of S of Rs 32,000
(v) Disputed sales tax liability of M of the financial year 2018-19 of Rs 15,000 which was paid by the firm on 01.12.2022 but not deducted from any of the income given above.
Determine and find out the income of RS & Co. which will be subject to tax for A.Y. 2023-24:
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