One of our company has an accumulated loss (P& L Debit Balance) of Rs.16Lacs against Share Capital of Rs.1L and Loan from Directors the balance of Rs.15 Lac. If the Loan is being Written off it will attaract MAT for 15L. Please guide me how can I write off the Losses and file for the closure of the company.
Thanks
Profit as per your projected plan = 15 Lacs
Accumulated losses as per books = 16 Lacs
Break up of such loss , not known.
As per MAT provision, you can get deduction of Business Loss / Depreciation whichever is less.
So out of Rs. 15 Lacs profit you can get a deduction of Rs. _____ (being book loss or depreciation whichever is less)
There is no other way for you.
Also you need to calculate Income Tax (as it seems it will be higher than MAT tax)
Check out and revert with all the figures.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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