115jb

This query is : Resolved

Share Report Follow Query Ask a Query

naga raju

naga raju (Querist)
Follow

28 November 2012 Dear Professionals

What is sec 115jb in brief

thanking you

CA Manish

CA Manish (Expert)
Follow

28 November 2012 https://www.caclubindia.com/experts/section-115jb-of-income-tax-act--378515.asp

Please follow the link.

Message likes : 1 times

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

28 November 2012 Section 115JB deals with the provisions of
Minimum Tax which a company has to pay.
.
In spite of the fact that the company is making profits, declaring dividends, still not becomes liable to pay tax due to various tax concessions and incentives.
.
Such a company is required to pay minimum tax @ 18.5% of its book profit (which is computed in accordance with the provisions of Companies Act, and after making certain adjustment as per Income Tax Act).
.
In future credit is available against such tax when company becomes liable to pay tax at regular rates.

Message likes : 1 times

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

28 November 2012 In simple terms, every company is required to pay a tax which is higher of the two:

1. Income tax computed as per the normal provisions of the Act.
2. 18.5% of the book profits as computed u/s 115JB(1).

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now