Applicability of MAT if the income of a co. is exempt U/s 80

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2010 Dear Sir/ maam

i wnt to know about the aplicability of MAT in case of a co. if the Income of the co is exempt u/s 80 IC

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 December 2010 Deduction u/s 80IC is allowed for the pupose of computing profits taxable under normal provisions of Income Tax Act.

However for calculating book profits u/s 115JB deduction allowable under chapter VI - A is not an allowable reduction and hence the companies are liable to pay MAT on the profits deducted u/s 80IC