Given is the summarized statement of cash pertaining to an artist for the previous income year. Receipts Amount Payments Amount To Balance b/d- Cash…

Given is the summarized statement of cash pertaining to an artist for the previous income year.

Receipts	Amount	Payments	Amount
To Balance b/d- Cash in hand	20,000	By Administrative expenses	50,000
Cash at bank	230,000	By office equipment Purchased (Chaitra)	180,000
To Receipt from script playing	700,000	By Communication expenses	30,000
To Receipt from dance training program	300,000	By Salary to assistants	180,000
To consultation fees after TDS	85,000	By Life insurance premium (Own)	35,000
To Dividend received	40,000	By Research and development	50,000
To interest on investment	120,000	By Office rent	120,000
To Causal income received	30,000	By Water Electricity expenses	30,000
To Other professional incomes	75,000	By Refreshment expenses	20,000
		By Insurance premium of building	15,000
		By Donation to tax exempt entity	40,000
		By Balance C/d	850,000
Total	1,600,000	Total	1,600,000

Further information:

a. Water/electricity expenses are used equally for professional and personal purpose.

b. Compensation of Rs. 200,000 for the breach of contract from a producer has not has not been received yet.

c. Other professional incomes include Rs. 5,000 bad debts recovered which is not allowed for deduction previously.

d. Outstanding office rent Rs 20,000 is yet to be paid.

e. Receipt from script playing includes Rs. 2,000 relating to three years ago income and advance consultation fees Rs. 20,000 is not shown in above receipts account.

Required :

a. Assessable (Net) income from profession

b. Statement of taxable income

c. Tax liability