Income Tax Sec.115JB Query (MAT)

Devendra (Qualified Audit Assistant)   (521 Points)

19 September 2008  

Here is one query about Section 115JB of The Income Tax Act, 1961.

Suppose, while computation of tax as per the normal provisions, I came across one situation:

Business Income                                                                                              100

Less: Brought Forward Losses/Unabsorbed Depreciation                       30 

Total Income                                                                                                        70

Less: Deduction u/s. 80IB @ 30%                                                                 ????

Now my query is that the deduction under section 80IB is to be calculated @ 30 % on which amount,i.e., on 100 or on 70.

Please reply at the earliest.

--Devendra