12 September 2019
Dear sirs : i need to know net profit and income tax calculation for a domestic company for financial year 2018-2019 (assessment year 2109-2020) . Details are as given here. Net Loss : Rs.3,60,124.00 including depreciation under companies act Rs.4,28,826.00 and :: Not excluding depreciation under Income Tax Act is Rs.1,74,240.00. Kindly advise. regards
12 September 2019
SIR 1) Net Profit in as per Companies Act is not there 2) Gross Income as per Income tax is : Net Loss + Depreciation as per co. act 2013 -Depreciation as per Income tax therefore amount comes like that : Net loss : -360124 Add depreciation as per co. Act 2013 428826 Net profit before depreciation 68702 Less depreciation as per income tax 174240 Net loss after depreciation is income tax -105538 as per income tax act loss can be carried forward for 8 year. Book Profit : Net Profit /loss add depreciation debited to profit & loss account therefore book profit Net loss -360124 Add depreciation as per co. Act 2013 428826 Book Profit as per MAT 68702 Tax 18.5% 12709.87 4% education cess 508.39 Total 13218.26
Note : As per Income tax Income tax NIL but as per MAT (18.5% on Book profit ) if we assume Gross Receipt or Turnover of Company ( Domestic Company) is less then 250cr then income tax rate is 25%+4%education cess or but as per MAT you have to calculate Book Profit and pay tax accordingly at rate 18.5% higher of both Hope your query get resovled
CAclubindia
