Nnbook profit as per section 115jb

Calculation of mat credit applicability of minimum alternate tax. For the purposes of this section, book profit means the profit as shown in the. As per explanation 1 to section 115jb2 book profit for the purposes of section 115jb means net profit as shown in the statement of profit and. Cbdt issues faqs on computation of book profit for. Calculation of book profits for the purpose of mat section 115jb. First of all calculate tax as per normal provisions of income tax. Profit as per profit and loss account in the current year.

However, for computing the eligible amount for the succeeding year, the taxpayer has adjusted inr 25 against. The taxpayer reduced inr 25 being lower of unabsorbed loss and unabsorbed depreciation in the tax computation under section 115jb of the act. Faqmat book profit computation for ind as compliant companies. Mat provisions require book profit off to the lower number. To compute book profit, on should take profit and loss account and make additions and deletions.

Section 115jb, incometax act, 19612019 income tax department. There are differing views of various tribunal on this issue, some holding that 14a disallowance should not be made in the profit as per sec. Dear friends, under section 115jb of it act 1961, in order to compute book profit, the following is to be reduced from profitloss as per companies act 20. Income tax computed as per provision of section 115jb of income tax act. While calculating book profits under section 115jb of income tax act. Minimum alternate tax mat us 115jb of income tax act, 1961. As per section 115jb, every taxpayer being a company is liable to pay mat, if the incometax including surcharge and cess payable on the total income, computed as per the provisions of the incometax act in respect of any year is less than 18. No marginal relief, since the income does not exceed. Calculation of book profits for the purpose of mat. For computation of book profit, one may proceed as follows. Existing clause iii of explanation to section 115jb 2 of the act provides for deduction of lower of the amount of loss brought forward or unabsorbed depreciation as per books of account for computation of book profits. Step 1 find out net profit before other comprehensive income oci as per statement of profit and loss of the company step 2 adjustment to net profit to convert it into book profit which are given under explanation 1 to section 115jb 2. It is the net profit shown in the profit and loss account for the previous year in question and as increased and decreased by certain items.

Complexity in computing the book profit under mat provisions. Minimum alternate taxsection 115jbhow to compute arthikdisha. The procedure for the computation of book profit as per. Brochure report title goes here section title goes here.

As per section 115jb of the income tax act, if for any previous year for. The book profit computed as per provisions of section 115jb should be certified by a chartered accountant in form no. Following proviso shall be inserted in subsection 1 of section 115jb by the. What will be the tax liability of essem minerals pvt. Cbdt amends the report on computation of book profits for. Book profit is defined in section 115jb of the act. Claimed as per accounts and under 115jb from year 1 to year 3. Section 115jb along with the return of income filed under section 9 1 of the act or along with the return of income furnished in response to a notice under section 142 1i of the act. Tax liability as per the mat provisions are given in sec 115jb18.