Ramyaa (IPCC student) (32 Points)
25 October 2012Hi al,
The company has capital gains in its books. For tax purposes this is subject to indexation resulting in capital loss. But while computing MAT this capital gain would get taxed. The same amount is subject to tax as per MAT provisions whereas as per IT act this is not a taxable income. Is ths correct?
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 25 October 2012
no i dont think so..while calculating book profit for tax puposes profit on sale of assets is treated separately..it cannot be added to book profit..
it is treated under the head CAPITAL GAINS as you mentioned
Or may i did not get your question that well
CA Siddharth Mehra
(Chartered Accountant)
(145 Points)
Replied 25 October 2012
You are right to some extent, since not all captal gain are taken to compute book profit for the purpose of MAT.
Long term Capital gain on sale of shares (STT paid) u/s 10(38) (which is exempt in Income Tax) are considered for the purpose of paying MAT .
In other words
LTCG shall be credited to the profit & loss account if not already credited & if there is loss it shall be debited to the same.
Thanks
ramidi santhosh
(Jr.Manager jsw steel ltd)
(62 Points)
Replied 07 November 2012
dear members,
can anyone explain regarding mat?
in which case it is payable?
whether if tax paid under mat can be set off in next year against taxpayable? please give me any example regarding it
CAclubindia
