115 JB

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hemlata (Querist)
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29 August 2009 while calculating MAT u\s 115JB,what will be book profit in following case:

p & l profit is 612000 including Rent income of Rs.300000(taxable under income from house property)

book profit should be Rs. 612000 or 612000-300000=312000 ?????

CP Ram

CP Ram (Expert)
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29 August 2009 Book profit in your case is Rs.612000.

This is because for the purpose of computation of book profit u/s 115JB, every company assessee shall prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI of the Companies Act, 1956. and hence P & L profit is the starting point of computation of book profit. And if there is no adjustment to be made to the profit then, the profit that has been shown in the profit & loss a/c shall be the book profit for the purpose of section 115JB.