115jb tax payment while unabsorbed depreciation remains

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CA Prabhakar (Querist)

09 January 2009 When we are sure that 10% deemed income is greater than Gross total Income irrespective of Unabsorbed depreciation is deducted from GTI OR not..

eg..
TAX

GTI 1,00,000 - 30% - 30000

DEEMED INCOME 3,50,000 - 10% - 35000

WE STILL have unabsorbed dep for 1,00,000..

my question is,

1. now should we deduct unabsorbed dep from gti and pay tax u/s 115jb or

2.we may keep unaborbed dep as carried forward benefit itself and pay tax u/s 115jb.

since we are going to pay tax anyway as per 115 jb can we adopt the 2nd case since it ll give benefit to us in future by carry forwarding

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

09 January 2009 Unabsorbed depreciation or unabsorbed business loss AS PER BOOKS whichever is less is to be deducted to arrive book profit u/s 115JB. If you do this it has no connection with the unabsorbed depreciation/unabsorbed business loss allowed to be carry forward AS PER INCOME TAX ACT. Hence questions 1 and 2 has no relevance. Pl read the section once again carefully.

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