28 July 2012
After calculating MAT and IT we are paying tax as per MAT. In MAT calculation we have deducted lower of unabsorbed depreciation or business loss to the tune of Rs.50000 as per books.
Now i have a query that if we have used unabsorbed depreciation of book will it have any impact on Depreciation of IT act. i.e., the total unabsorbed depreciation will be allowed to carry forward or not? or whether the amount will be altered.
28 July 2012
Total unabsorbed depreciation will be allowed to carry forward for Income Tax purpose.
Sec 115JB (for MAT) is a self contained code and starts with non-obstante clause. So, any adjustment done for the purpose of calculation of MAT will not have any effect on c/f business loss/unabsorbed depreciation for the purpose of computation of income tax in subsequent years.
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