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Computation of total income

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Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2011 In case of pvt. ltd. company.
Whether excess provision of income tax of previous year credited in the current added to the income for computation of total income. It means, if any excess tax provision will be taxed in the next year?

Auditor says like this

Pls. advice / resolve.

Thnx

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 September 2011 Under income tax computation, Always profit before Income tax provision will be considered whether normal calculation or tax calculation u/s.115JB both. so reversing or providing excess provision of income tax will of affect your income tax calculation. even if you debited income tax in p&l while computation will be added back the same

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