A State Government undertaking showed a profit of ₹ 8,69,000 for the P.Y. 2019-20. It had debited, in its Profit & Loss A/c ₹ 25,000 by way of royalty paid to the Central Government and ₹ 30,000 by way of privilege fees paid to the State Government. The privilege fee was levied exclusively on this undertaking. The taxable profits of the Company during the A.Y. 2020-21 are:
A. ₹ 8,69,000
B. ₹ 8,39,000
C. ₹ 8,99,000
D. ₹ 8,44,000
Answer:C
A State Government undertaking showed a profit of ₹ 8,69,000 for the P.Y. 2019-20. It had debited, in its Profit & Loss A/c ₹ 25,000 by way of royalty paid to the Central Government and ₹ 30,000 by way of privilege fees paid to the State Government. The privilege fee was levied exclusively on this undertaking. The taxable profits of the Company during the A.Y. 2020-21 are:
A. ₹ 8,69,000 B. ₹ 8,39,000 C. ₹ 8,99,000 D. ₹ 8,44,000