15 January 2011
The there is a difference between Two Profits i.e. Regular Profit and Book Profit. Where in case of any company, the income-tax, payable on the total income as computed as per Act is less than 15%. of its Book Profit, then such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be 15 % of book profit .
15 January 2011
MAT CREDIT IB CASE YOU HAVE PAID MAT AS ABOVE SO THE EXTENT OF THE MAT PAID EXCESS OF THE REGULAR TAX CAN BE TAKEN AS CRDIT AND CAN BE CARRY FORWORD TO THE 10 NEXT SUBSEQUENT YEARS .
for eg : where the regular tax is 10 lakhs, but the MAT is 12 lakhs, so to the extent of the higher of the MAT paid over and above the regular tax means 12-10 = 2 lakhs is taxken as credit.
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