Calculation of book profits u/s 115jb

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Nishtha jain (Querist)

07 August 2012 While calculating Book Profits u/s 115JB , the income exempt u/s 10A is to be subtracted or not ?

I have read the ready reckoner , there it has been mentioned that "Income exempt u/s 10A upto A.Y 2007-2008"..What is the meaning of this line ?

Could we subtract this income only upto A.Y 2007-08 & not now ? Plz reply with reasons ?

CA Vikas Kumar Sharma

CA Vikas Kumar Sharma (Expert)

07 August 2012 Yes income exempt u/s 10A & 10B deducted up to A.Y. 2007-08.

Now you can deduct u/s 10,11,12 if income credited to P&L a/c.

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srinath

srinath (Expert)

07 August 2012 while calculating the book profits under section 115jb, the profits from units u/s 10A can be deducted only till AY 2007-08

After that MAT needs to be paid even on profits u/s 10A.

However, this questions becomes academic since benefit u/s 10A is no longer available

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Nishtha jain

Nishtha jain (Querist)

08 August 2012 In my case , the client has credited the income covered u/s 10A to the Profit & Loss Account.

And the respective expenses have also been debited to the P/L Account.

So , while calculating book profits u/s 115jb , Do i need to adjust these two ?

Whenver i check the method of calculating book profits under above section on Internet , i nowhere found these words " Upto A.Y 2007-08 " but these words are appearing in Ready reckoner...

srinath

srinath (Expert)

08 August 2012 can you please tel me to which year this corresponds to

If it pertain to 2007-08 or before, then both expenditure and income needs to be eliminated. otherwise you need not eliminate

Please look at clause(f) explanation 1 to section 115JB. you have number 84 with * mark. Just go to that reference you would be able to find out

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Nishtha jain

Nishtha jain (Querist)

08 August 2012 Sir , it pertains to A.Y 2010-11 , Thank you so much Sir for your Answer ...