12 October 2011
I hv filed a return Of a Pvt Co. having Land Of 15 Acres... source shown as Agriculture income Rs.219865.. Bt a demand letter is come from CPC ... having tax liability u/s 115 JB of Rs. 32980. Plz help me out for reply ..
13 October 2011
Sec 115 JB (MAT): It is not clear wether your co. source of income is only -from agriculture? However, assuming your source of income is from business and agriculture, as per MAT (Minimum Alternate Tax, Sec 115 JB, your co's book profit would be reduced for Sec 10 income and added with sec 10 expenses. Therefore net effect is that agricultural item is totally excluded from book profit.Sec. 10 is income from agricultue, and is also exempted under income tax. Hence, the tax liablity of the co. under MAT arises when the tax liability is lower than 18 % of book profit. Therefore, advised to check the same.
17 October 2011
if co. source of income is only from agriculture, after co's book profit is reduced for Sec 10 income and added with sec 10 expenses, net effct is that agricluture income and exp. is excluded. Demand letter does not seems to be justified. Speak with them for calrification of your view point.
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