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Query regarding tax effect on book profit

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2018 If ITAT has quashed an assessment order, and in the assessment order although various additions were made to total income, the final tax liability was calculated on book profit since the same was higher than income tax calculated on assessed income under normal provisions. I wish to know how to calculate the tax effect in this case???

CA Suresh Jain

CA Suresh Jain (Expert)

08 November 2018 In this case your MAT credit eligibility must have reduced. You need to pass necessary entry for the same

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2018 In CBDT Circular 3/2018 dated 11.07.18[revision of monetary limits for filing appeal] in para No 6, a formula has been given for calculating the tax effect in cases where income has been computed u/s 115JB orJC. But although formaula for the income has been given it has not been specified what tax rate is to be applied (whether normal rate of 30% or book profit rate.)

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