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Hello sir,
in chapter 4 lecture there was all discussion about the allowed and disallowed expenditures.
but sir what about about the incomes which are deducted from the net profits as non taxable income or assessed anywhere else?in which chapter they will be covered?thanks in advance for your precious guidance.
regards.They have mostly already been covered in chapters 2 and 3 where we saw other sources of income such as interest income property income and dividend income which if credited to the statement of profit or loss will be deducted as they are dealt with separately on the income tax computation and something like a profit on disposal of a fixed asset is either an overcharge of depreciation or a chargeable gain which is dealt with in later chapters.
Dear Sir, I have doubts in the following questions
1) If a business has already claimed AIA on a plant and then the plant is sold, then will the sales proceeds be the balancing charge?
2) If there is a balancing charge than the capital allowance claimed then will it increase the profits? In that case then can we ignore the capital allowance part?
Thanks
1) If the pool has a nil tax wdv then any sale proceeds will indeed create a balancing charge to restore the pool balance to nil to c/f to the next period
2) if there is a net balancing charge from the capital allowances computation then this will increase the adjusted trading profit
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