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Income tax

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NK1976

NK1976 (Querist)
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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)
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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.

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