Calculation of income tax
This query is : Resolved
27 May 2012
We are a Pvt Ltd company :
A/Y 2011/12
Book Profits Rs 3200000
Net Taxable Income before adjment of b/f depreciation & bsiness loss Rs.2600000
Depreciation B/F : 1900000
Business Loss B/F : 1000000
Mat calculated : 600000
Tax paid : 620000
A/Y 2012/13
Book profit Rs. 5800000
Taxable income Rs. 5500000
There is carried forward MAT of A/Y 2011/12 and carry forward depreciation and business loss as above .
Alreadpaid Adva Tax Rs. 1100000
Please advise how to adjust the Mat recoverable and brought forward dep andbusiness loss
urgent
Please advise
We are a Pvt Ltd company :
A/Y 2011/12
Book Profits Rs 3200000
Net Taxable Income before adjment of b/f depreciation & bsiness loss Rs.2600000
Depreciation B/F : 1900000
Business Loss B/F : 1000000
Mat calculated : 600000
Tax paid : 620000
A/Y 2012/13
Book profit Rs. 5800000
Taxable income Rs. 5500000
There is carried forward MAT of A/Y 2011/12 and carry forward depreciation and business loss as above .
Alreadpaid Adva Tax Rs. 1100000
Please advise how to adjust the Mat recoverable and brought forward dep andbusiness loss
urgent
Please advise
28 May 2012
For A.Y.2011-2012
Taxable Income As per Income tax would be nil And Rs.3,00,000 (26,00,000-10,00,000-19,00,000) Unabsorbed depreciation would be carried forward to A.Y.2012-2013.However MAT would be payable Rs.593280 say Rs.6,00,000 would be carried forward next year.
Following entries Should be Passed
Profit and loss account Dr Rs.6,00,000
To Provision for income tax Rs.6,00,000
For A.Y.2012-2013
Taxable income would be 52,00,000 (55,00,000-3,00,000 unabsorbed depreciation set off brought forward from A.Y.2011-2012) on which tax @ 30.90% i.e.52,00,000 X 30.90%=16,06,800
58,00,000*19.055% Rs.11,05,190
Hence The company have to Pay Rs.16,06,800 out of which Rs.5,05,190 would be adjusted against MAT credit of Previous year and Balance 11,05,190 has to be paid through Challan.Balance of MAT credit of Rs.94,810 would be available in succeeding year up to A.Y.2021-22
Following entries should be passed
MAT Credit A/c. Dr. Rs.5,05,190
To Profit and loss account Rs. 5,05,190
Profit And loss account Dr.Rs.16,06,800
Provision for Income Tax Rs.16,06,800
At the time of Final Assessment
Provision for Income Tax Dr. Rs. 16,06,800
To MAT Credit Rs.5,05,190
To Advance Tax Rs.11,00,000
To Bank Rs. 1,610 (Self assessment tax)
CA.Nilang A Dalal
nil_dalal@yahoo.co.in
Taxable Income As per Income tax would be nil And Rs.3,00,000 (26,00,000-10,00,000-19,00,000) Unabsorbed depreciation would be carried forward to A.Y.2012-2013.However MAT would be payable Rs.593280 say Rs.6,00,000 would be carried forward next year.
Following entries Should be Passed
Profit and loss account Dr Rs.6,00,000
To Provision for income tax Rs.6,00,000
For A.Y.2012-2013
Taxable income would be 52,00,000 (55,00,000-3,00,000 unabsorbed depreciation set off brought forward from A.Y.2011-2012) on which tax @ 30.90% i.e.52,00,000 X 30.90%=16,06,800
58,00,000*19.055% Rs.11,05,190
Hence The company have to Pay Rs.16,06,800 out of which Rs.5,05,190 would be adjusted against MAT credit of Previous year and Balance 11,05,190 has to be paid through Challan.Balance of MAT credit of Rs.94,810 would be available in succeeding year up to A.Y.2021-22
Following entries should be passed
MAT Credit A/c. Dr. Rs.5,05,190
To Profit and loss account Rs. 5,05,190
Profit And loss account Dr.Rs.16,06,800
Provision for Income Tax Rs.16,06,800
At the time of Final Assessment
Provision for Income Tax Dr. Rs. 16,06,800
To MAT Credit Rs.5,05,190
To Advance Tax Rs.11,00,000
To Bank Rs. 1,610 (Self assessment tax)
CA.Nilang A Dalal
nil_dalal@yahoo.co.in
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