MAT

This query is : Resolved

pitamber mishra (Querist)
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23 February 2010 As per section 115JB, if TAX PAYABLE by a company ON ITS TOTAL INCOME computed as per normal provisions of income tax act is less than 15% of BOOK PROFIT then such BP shall be deemed to be the income of the company and tax shall be charged @ 15% on such BP.

Now in many celebrated books, i have found the authors saying tax shall be higher of-
a)income tax on TI(+scharge,if applicable+edu cess)
b)15% of BP(add scharge, if applicable)+ ed cess.
what would u do if TI is Rs 5000000 and BP is 10100000?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 February 2010 Gross income tax payable on income and gross MAT payable on book profits excluding surcharge and education cess needs to be considered. The same can be verified by the format of ITR - 6 return form also.

pitamber mishra

pitamber mishra (Querist)
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03 March 2010 Thanks Aditya Mr Aditya..

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