04 January 2015
Book profit of Company is 20200, but no income tax liability arises as company incurred loss of 40000 in previous year. How the treatment of same is made in Balance Sheet and Profit and loss account.
05 January 2015
Profits as per account is 20200 and there is not such expenses or transactions which are disallowed under income tax act.
But the company has incurred a loss of 40000 in previous financial year, hence income under income tax act after adjusting loss is (40000-20200) - 19800 (loss), so income tax liability. But the company has liability of MAT.
CAclubindia
