Depreciation charged to P&L = 15000.00 amount credited to P&L from Revaluation Reserve = 6000.00 Depreciaiton on WDV basis @ 10%: opening WDV of asset = 150000.00 Rs.50000.00 included in WDV for revaluation.
For the purpose of section 115JB of the income tax act, what will be Book Profit?
24 October 2009
is the following working is correct:- Book Profit: = 200000.00 Add: Depreciaiton = 15000.00 ----------- 215000.00 Less: amount of reserve (revaluation reserve) credited to P&L a/c [explanation (i) to section 115JB(2)] = 6000.00 amount of depreciation excluding the deprecitaion on account of revaluation = 10000.00 amount of revaluation reserve credited to P&L a/c not exceeding deprecitaion on account of revaluation = 5000.00 ---------- 194000.00 -------
25 October 2009
Superb... Very Well done.. It is absolutely correct. U can also refer to the Illustration given in Dr. Vinod k. Singhanias' Direct Taxes.
25 October 2009
Anshu, It is not double reduction... its different on either cases... 1st reduction, u ve done is for the credit u ve made to PnL 2nd, being the dep on rev...
27 October 2009
so it is double reduction on account of amount of revaluation reserve credited to P&L a/c relatable to depreciation on amount of revaluation.
CAclubindia
