(a) Explain in brief the deductions that are expressly allowed in computing the income from business under the Income-tax Act, 1961.
(b) Harish sold jewellery on 15th June, 2023 for ₹ 10,10,000 (cost of jewellery to Harish on 25th May, 2002 was ₹ 94,500 and brokerage paid on the sale of jewellery was ₹ 10,000). On 15th December, 2023, he purchased a residential house for ₹ 5,00,000. On 15th June, 2023, he did not own any residential house. The cost inflation index for 2002-03 was 105 and for 2023-24 it was 348. Compute the amount of capital gains chargeable to tax for the Assessment Year 2024-25.
(i) Assuming that Harish sells the new residential house before 15th December, 2026, what will be the taxable capital gains and for which year?
(ii) Assuming that Harish purchases any other residential house before 15th June, 2025 or constructs any other residential house before 15th June, 2026, what will be the taxable capital gains and for which year?
(c) Sky Ltd. invited application for issuing 2,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share, payable as follows :
₹ 6 per share (including premium) on application and allotment, balance on the first and final call.
Applications for 6,00,000 Equity Shares were received. Applications for 3,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made and all the amount was received except on 2,000 shares, which were forfeited and re-issued at ₹ 7 per share.
Pass necessary Journal Entries in the books of Sky Ltd.