Mat calculation
This query is : Resolved
14 December 2013
In Calculation of MAT Profit Before Tax is considered ??? or Profit after Tax is Considered ?? Plz Reply Soon.. Its Important..
14 December 2013
‘Book profit’ = Net Profit as per profit & loss account add Adjustments of Step I less Adjustments of Step II
Step I: Positive adjustments in net profit to compute "book profit":
a) the amount of income-tax paid or payable and its provision;
b) the amount carried to any reserves, other than a reserve specified under section 33AC;
c) the amount set aside for meeting unascertained liabilities;
d) the provision for losses of subsidiary companies;
e) dividends paid or proposed;
f) the expenditure relatable to any income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12;
g) the amount of depreciation;
h) deferred tax liability created during the year;
i) the provision for diminution in the value of any asset; or
j) the amount standing in revaluation reserve relating to revalued asset on the retirement or disposal of such asset.
Step I: Positive adjustments in net profit to compute "book profit":
a) the amount of income-tax paid or payable and its provision;
b) the amount carried to any reserves, other than a reserve specified under section 33AC;
c) the amount set aside for meeting unascertained liabilities;
d) the provision for losses of subsidiary companies;
e) dividends paid or proposed;
f) the expenditure relatable to any income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12;
g) the amount of depreciation;
h) deferred tax liability created during the year;
i) the provision for diminution in the value of any asset; or
j) the amount standing in revaluation reserve relating to revalued asset on the retirement or disposal of such asset.
14 December 2013
Step II: Negative adjustments in net profit to compute "book profit":
a) the amount withdrawn from any reserve or provision, if credited to the profit and loss account. Provided that the book profit of earlier years have also been increased by those reserves or provisions in the year of creation;
b) income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12
c) the amount of depreciation debited to the profit and loss account (excluding depreciation on account of revaluation of assets);
d) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets as referred above;
e) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account;
f) the amount of profits of sick industrial company unless the entire net worth of such company becomes equal to or exceeds the accumulated losses; or
g) deferred tax asset recognised during the year.
a) the amount withdrawn from any reserve or provision, if credited to the profit and loss account. Provided that the book profit of earlier years have also been increased by those reserves or provisions in the year of creation;
b) income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12
c) the amount of depreciation debited to the profit and loss account (excluding depreciation on account of revaluation of assets);
d) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets as referred above;
e) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account;
f) the amount of profits of sick industrial company unless the entire net worth of such company becomes equal to or exceeds the accumulated losses; or
g) deferred tax asset recognised during the year.
14 December 2013
Step II: Negative adjustments in net profit to compute "book profit":
a) the amount withdrawn from any reserve or provision, if credited to the profit and loss account. Provided that the book profit of earlier years have also been increased by those reserves or provisions in the year of creation;
b) income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12
c) the amount of depreciation debited to the profit and loss account (excluding depreciation on account of revaluation of assets);
d) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets as referred above;
e) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account;
f) the amount of profits of sick industrial company unless the entire net worth of such company becomes equal to or exceeds the accumulated losses; or
g) deferred tax asset recognised during the year.
a) the amount withdrawn from any reserve or provision, if credited to the profit and loss account. Provided that the book profit of earlier years have also been increased by those reserves or provisions in the year of creation;
b) income exempt under Sec. 10 [other than Sec. 10(38)], Sec. 11 or Sec. 12
c) the amount of depreciation debited to the profit and loss account (excluding depreciation on account of revaluation of assets);
d) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets as referred above;
e) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account;
f) the amount of profits of sick industrial company unless the entire net worth of such company becomes equal to or exceeds the accumulated losses; or
g) deferred tax asset recognised during the year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- HOUSING LOAN ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- ITR 4 and Bank transactions
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- Carriage Road Act, 2007 read with Carriage by Road Rules, 2011
- TDS AND ITR ISSUE
- Journal entry of busniess expenses
- Cash balance limit and property purchases limit
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
