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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010
please clarify that, for computing MAT under section 115JB the profit as per books should be taken. for this purpose we taken profit after taxes and i done the adjustments as mentioned in section 115JB. taking profit after tax is correct or not. or i need to take profit before allocations for taxes i.e profit before taxes?

thank u

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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06 September 2010 It should be profit before tax.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 September 2010 The computation of book profit should begin with profit after tax. To that figure, the amount of income tax paid or payable and provisions therefor has to be added. Pl refer Clause (a) of explanation 1 to section 115 JB (2) of the Income tax Act,1961.

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