Treatment of income tax refund u/s 198 of companies act

1)  Profit u/s 198 practically denotes net profit before tax with some adjustments.  

2)  IT refund is  an adjustment after arriving at net profit and is not to be considered u/s 198.  

3) Profit on sale of all fixed assets has to be deducted u/s 198(3)(d).

4) Directors' remuneration is to be deducted for the purpose of Sec.198.  However, only for the purpose of calculating ceiling of 11% net profit, directors' remuneration will be added back to profit u/s 198.  [Ref. Sec.197(1)].

Thank you Sir,

For the purpose of Section 135 (CSR), it is explained that the computation of profits should be as per section 198. Is Directors remuneration deductable from profit in this context as well....?? Kindly clarify