Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Income tax

Save Share

This query is : Resolved

NK1976

NK1976 (Querist)

31 March 2012 Dear Sir,

In FY 2011-12 the companies Profit & Loss accounts Books Profit shows the Rs. 22,25,475/-as on 31st March-2012.
Profit & Loss accounts includes the Long Term Capital Gain on Share for RS.14,35,345/- & Dividend Rs.34710/-.

While preparing computation of income of the company the normal Tax Due is Rs.2,65,241/- and the MAT due is RS.4,24,064/-. Long Term Capital Gain for Rs.14,35,345/- & Dividend Rs.34,710/- is exempt U.S. 10(38).

MAT due is correct or not. What can i do. What is the actual accounts treatment

Kindly give the suggestion as earliest.

Thanks & Regards

(N. Kadam)

CA Kishore Tallam

CA Kishore Tallam (Expert)

12 April 2012 Assuming Book Profit is Rs. 2,225,475, then Dividend earned shall be excluded by virtue of Sec 10.
Then book profit shall be Rs. 2,225,475 - Rs. 34,710 = Rs. 2,190,765.
MAT tax is 18.54% = Rs. 406,168.
MAT Credit = Rs. 406,618 - Rs. 265,241 = Rs. 140,927.

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