Minimum Alternate Tax

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Rajesh.S (Querist)

12 December 2008 For calculation of minimum alternate tax (MAT) u/s 115JB the book profit can be reduced by the loss brought forward or unabsorbed depreciation whichever is less as per books of account.
In the following situation which is the amount that can be deducted from book profit?
As Per IT return

Business Loss Brought Forward 2,00,000
Unabsorbed Depreciation 1,00,000
Total Loss Brought forward 3,00,000

As per books of account
Loss brought forward 1,20,000

Business loss and depreciation loss is not shown separately in the books of accounts.How can it be worked out?

CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Expert)

12 December 2008 allowed for MAT is 100000

the calculation is based on calculation of computation of income or shown in IT RETURN.

Rajesh.S

Rajesh.S (Querist)

15 December 2008 Thank you for answering my query.But then why have they added the words "as per books of accounts" in clause(iii)of Explantaion 1 to section 115JB. Shouldn't it be deleted as it is confusing.

Jitender

Jitender (Expert)

18 December 2008 the amount to be deucted is to be taken as shown in books of accounts.
u need to segregate dep from losses shown in books & then deduct the least of them.

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