Income tax calculation

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PARDEEP KAPIL (Querist)
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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

Karim N Shaikh

Karim N Shaikh (Expert)
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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

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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12 September 2019 Dear sir : thanks for detailed reply...thanks a lot

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