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?
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.
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.
CAclubindia
