From the information given below, compute the total income of the firm and tax payable by it for the Assessment Year 2022-23.

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 To compute the total income of the firm and tax payable by it for the Assessment Year 2022-23, we need to first compute the taxable income of the firm by adjusting the various incomes and deductions as per the provisions of the Income Tax Act, 1961. The computation is as follows:

Particulars Amount (Rs.)

Profit from small scale industrial undertaking 6,50,000 Profit from the animal breeding business 2,20,000 Gross Total Income 8,70,000 Less: Deductions under Chapter VI-A Donation to charitable institution (approved) by cheque 1,30,000 Total Deductions 1,30,000 Taxable Income 7,40,000

Now, we can compute the tax payable by the firm using the income tax slab rates for the Assessment Year 2022-23:

Income Tax Slab Tax Rate Up to Rs. 2,50,000 Nil Rs. 2,50,001 to Rs. 5,00,000 5% Rs. 5,00,001 to Rs. 10,00,000 20% Above Rs. 10,00,000 30%

As the taxable income of the firm is Rs. 7,40,000, we can compute the tax payable as follows:

Tax payable = (0% of Rs. 2,50,000) + (5% of Rs. 2,50,000) + (20% of Rs. 2,90,000) = Rs. 0 + Rs. 12,500 + Rs. 58,000 = Rs. 70,500

Therefore, the total income of the firm for the Assessment Year 2022-23 is Rs. 8,70,000, and the tax payable by the firm is Rs. 70,500.

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