Income tax

This query is : Resolved

shruti (Querist)
Follow

19 December 2007 how much tax do abc has to pay if profit is btwn 20-25 lac. also note -
1) shpr has already deducted tds of rs. 1.50/2.0 lac while making payment to xyz
2) advance tax paid is 75000/-
3) expenses wl be around 4-10 lac.

so do they hv to pay any more tax?

pl adv.

CA. Vineet Grover

CA. Vineet Grover (Expert)
Follow

19 December 2007 Hi Shruti,

I am not able to understand that after ascertaining the profit how can a concern have expenses. Please make it clear that whether its expenses or brought forward losses in which case MAT shall be applicable.

Going by the higher side of the figures the tax liability shal come to Rs.1.89 Lacs.

The computation is here under:

Gross Profit 25.00
Less: Expenses 10.00
Net Profit 15.00
Tax Liab. 4.64
TDS 2.00
A.Tax 0.75 2.75
Tax Payable 1.89

(Considering the assessee as Compnay / Firm)

Rgds/
Vineet

shruti

shruti (Querist)
Follow

19 December 2007 this profit of 20-25 lc is the gross profit w/o taking into consideration any expenses.

pl adv if tax liability changes.

Upgrade to CAclubindia Pro. Subscribe Now!

shruti

shruti (Querist)
Follow

19 December 2007 wat is MAT ?

Ravikumar.G

Ravikumar.G (Expert)
Follow

19 December 2007 If it is a company based on depreciation as per companies act and Income tax act MAT will be applicable. In above case for example IT Depn is 16 laks but companies act depreciation is 8 lakhs the MAT tax will be applied.