115jb brought forward of loss

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Shijith (Querist)
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04 July 2015 Dear Sir,

While computing brought forward loss to be set off while doing MAT computation, can also take deferred tax loss incured by the company in previous years.That is whether deferred tax loss is form part of Business loss to carry forward under MAT

Ankur Singhal

Ankur Singhal (Expert)
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04 July 2015 dear Income tax act does not recognise deferred tax.
So, it means deferred tax loss is not a part of business loss.

Also Dferred tax is the concept given by Accounting standaerd and not by income tax act.

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Rupesh Jain

Rupesh Jain (Expert)
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04 July 2015 deffered tax loss /assets is not come under the income tax act. its provide by the AS- taxes on income.

its not come under the income tax act.

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Shijith

Shijith (Querist)
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06 July 2015 But Sir, As per 115JB carried forward of loss is computed under provisions of Parts II and III of of Schedule VI . So it includes deferred tax loss. Also explanation given to book loss no where said deferred tax to be removed from business loss. Explanation to business loss only says to remove depreciation.