While computing Book Profit for calculating Minimum Alternate Tax u/s 115JB, net profit as shown in Profit & Loss A/C has to be reduced be the following amount:
- Brought forward loss (excluding depreciation) or unabsorbed depreciation, whichever less,as per books of account.
|
Year
|
(Loss)/Profit before depreciation
|
Depreciation
|
(Loss)/Profit after depreciation
|
|
First
|
(4,00,000)
|
1,00,000
|
(5,00,000)
|
|
Second
|
2,00,000
|
70,000
|
1,30,000
|
|
Third
|
(1,00,000)
|
40,000
|
(1,40,000)
|
Q. No.1 Kindly tell me the amount to be termed as business loss( before depreciation) and unabsorbed depreciation for all three years as per books of accounts.
Q. No.2 Suppose if I have to calculate MAT for 3rd year, then should I consider the the amount of business loss( before depn) and unabsorbed depn. of the 1st and 2nd year also. Kindly explain in detail with the help of above mentioned figures.
CAclubindia
