Mat calculation
This query is : Resolved
23 March 2017
For Calculating Book profit for Section 115JB deduction of Lower of Brought Forward Loss or unabsorbed Depreciation is to be given.
there is a Company whose figures are given below please tell me whether any deduction is available for MAT Purpose as in the year ending 2017 the company is having Net Profit of Rs. 1000000/-
Part.......2012................2013.................2014........2015......................2016
PBD ......58280.00.....720684.00......735195.00.....-283136.00.....-542700.38
Dep........-99168.00....-582198.00....-582198.00....-415558.00.....-421065.00
PAD.......59112.00......138486.00.....152997.00......-698694.00.....-963765.38
Please suggest me that any deduction can be claimed for calculating Book Profit as per Section 115JB of the Income Tax Act, 1961.
there is a Company whose figures are given below please tell me whether any deduction is available for MAT Purpose as in the year ending 2017 the company is having Net Profit of Rs. 1000000/-
Part.......2012................2013.................2014........2015......................2016
PBD ......58280.00.....720684.00......735195.00.....-283136.00.....-542700.38
Dep........-99168.00....-582198.00....-582198.00....-415558.00.....-421065.00
PAD.......59112.00......138486.00.....152997.00......-698694.00.....-963765.38
Please suggest me that any deduction can be claimed for calculating Book Profit as per Section 115JB of the Income Tax Act, 1961.
24 March 2017
Section 115JB creates a deeming fiction for purpose of calculation of MAT and where deeming fiction applies provisions has to be applied as it is i.e. no ifs and buts applies. As per section 115JB only following adjustments are allowed
> Additions to net profit: Where followings amount (form I to IX) debited to profit & loss account:-
- Amount of income tax paid or payable and the provision thereof. ( the word “Income Tax” includes CDT u/s 115-O, Interest under income tax act, Education Cess, Income tax and others)
- The amount carried to any reserve by whatever name called. (like Reserve for expense, excess provision & etc.)
- The amount set aside for unascertained liabilities i.e. provision for unascertained liability (like pro. for Bed Debts, prov. for gratuity on ad-hoc basic etc.)
- Provision for loss of subsidiary companies
- Amount of dividends paid or proposed.
- Amount of expense relatable to any income to which section 10, 11, 12 (except sec. 10AA & 10(38)) apply. (Its mean income u/s 10AA & long term capital gain exempt u/s 10(38) are subject to MAT).
- Amount of depreciation (including depreciation on account of revaluation of asset).
- Amount of deferred tax and provision therefor.
- Provision for diminution in the value of any assets. (Like pro. for diminution in the value of investment as per AS-13/28).
- Amount standing in the revaluation reserve relating to revalued asset on the retirement or disposal of such asset. (if not credited to profit & loss account)
> Deletion to net profit:
- Amount withdrawn from any reserves or provisions and credited to profit & loss account provided that book profit of relevant previous year should have been increased by such amount.
- The amount of income to which any of the provisions of section 10, 11 & 12 except 10AA & 10(38) apply.
- Amount of depreciation debited to profit & loss account, excluding the depreciation on account of revaluation of assets. (i.e. actual depreciation not on part of revaluation has to be deleted from net profit)
- Amount withdrawn from revaluation reserve and credited to profit & loss account to the extent of depreciation on account of revaluation of asset.
- Amount of loss brought forward or unabsorbed depreciation, whichever is less as per the books of account. However loss shall not include the depreciation. (if loss brought forward or unabsorbed depreciation is nil then nothing shall be deducted.)
- Amount of Deferred Tax, is any such amount is credited in the profit & loss account.
Other than above no other adjustments are allowed for calculating book profits.
> Additions to net profit: Where followings amount (form I to IX) debited to profit & loss account:-
- Amount of income tax paid or payable and the provision thereof. ( the word “Income Tax” includes CDT u/s 115-O, Interest under income tax act, Education Cess, Income tax and others)
- The amount carried to any reserve by whatever name called. (like Reserve for expense, excess provision & etc.)
- The amount set aside for unascertained liabilities i.e. provision for unascertained liability (like pro. for Bed Debts, prov. for gratuity on ad-hoc basic etc.)
- Provision for loss of subsidiary companies
- Amount of dividends paid or proposed.
- Amount of expense relatable to any income to which section 10, 11, 12 (except sec. 10AA & 10(38)) apply. (Its mean income u/s 10AA & long term capital gain exempt u/s 10(38) are subject to MAT).
- Amount of depreciation (including depreciation on account of revaluation of asset).
- Amount of deferred tax and provision therefor.
- Provision for diminution in the value of any assets. (Like pro. for diminution in the value of investment as per AS-13/28).
- Amount standing in the revaluation reserve relating to revalued asset on the retirement or disposal of such asset. (if not credited to profit & loss account)
> Deletion to net profit:
- Amount withdrawn from any reserves or provisions and credited to profit & loss account provided that book profit of relevant previous year should have been increased by such amount.
- The amount of income to which any of the provisions of section 10, 11 & 12 except 10AA & 10(38) apply.
- Amount of depreciation debited to profit & loss account, excluding the depreciation on account of revaluation of assets. (i.e. actual depreciation not on part of revaluation has to be deleted from net profit)
- Amount withdrawn from revaluation reserve and credited to profit & loss account to the extent of depreciation on account of revaluation of asset.
- Amount of loss brought forward or unabsorbed depreciation, whichever is less as per the books of account. However loss shall not include the depreciation. (if loss brought forward or unabsorbed depreciation is nil then nothing shall be deducted.)
- Amount of Deferred Tax, is any such amount is credited in the profit & loss account.
Other than above no other adjustments are allowed for calculating book profits.
27 March 2017
Dear Sir,
Please explain in the situation given above means can you tell me that any deduction available in the case mentioned above, please use figures
The Whole Provision of Section 115JB is not to be applied in this particular case
Please explain in the situation given above means can you tell me that any deduction available in the case mentioned above, please use figures
The Whole Provision of Section 115JB is not to be applied in this particular case
27 March 2017
Since only depriciation is given other than profit and if depriciation figure is from accounting books, the same is already allowed while calculating book profits because for computing MAT Starting point is "Profit as per books" and nothing is mentioned other that dep. i don't think that any deduction is available for MAT.
27 March 2017
Sir, Profit Before Depreciation is given in first Row then Depreciation amount is given in 2nd Row then Profit after Depreciation is given in 3rd Row.
03 August 2024
https://docs.google.com/document/d/1GCP0afbEUTGj8pcI7eC8bUSPsxSalMK04qb_0vXpkCY/edit?usp=sharing
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