Dear Friends,
Under Section 115JB of IT Act 1961, in order to Compute Book Profit, the following is to be reduced from Profit/Loss as per Companies Act 2013:
(i) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account.
Explanation.—For the purposes of this clause,—
(a) the loss shall not include depreciation;
(b) the provisions of this clause shall not apply if the amount of loss brought forward or unabsorbed depreciation is nil
Now My queries are:
1. What is the Loss Brought Forward here ? Is it as per Sch III of Companies Act 2013 OR as per Loss computed as per 115JB (i.e. Book Loss) ?
For Example: Suppose 1st Year, Loss as per Sch III is Rs. 1,00,000/- and Book Loss as per 115JB is Rs. 75,000/- (because of some additions and Deletions)
Now in 2nd Year, for the purpose of "Loss Brought Forward" under section 115JB, Which amount is to be taken : Rs. 1,00,000/- or Rs. 75,000/-. ??
2. For Unabsorbed Depreciation as mentioned above, Depreciation is to be computed as per Companies Act OR Income Tax Act ?
3. From following example, please advise Amount to be taken for loss brought forward or unabsorbed depreciation for Book Profit Computation u/s 115JB for FY 2015-16:
| Financial Year | Profit/(Loss) as per Sch III (before Depreciation) |
Depreciation as per Companies Act | Total Profit/(Loss) as per Sch III |
| 2011-12 | (50,000) | 25,000 | 75,000) |
| 2012-13 | 80,000 | 1,00,000 | (20,000) |
| 2013-14 | 60,000 | 40,000 | 20,000 |
| 2014-15 | (75,000) | 35,000 | (1,10,000) |
| Total | 15,000 | 2,00,000 | (1,85,000) |
Please Kindly suggest.
CAclubindia
