22 June 2009
Minimum Alternate tax is Governed by section 115JB of Income Tax Act, 1961 which is applicable on Companies registered under the Companies Act 1956. According to which the companies have to pay higher of the following as TAX TO THE GOVT. 01. Tax as per Normal Rates or 02. 10% of Book Profit
Book Profit is calculated by taking into consideration the items to be added back or to be deducted from Profit of the co. while Normal profit is calculated according to Sec 28 to sec 44 of the act.
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