calculation of MAT

Its actually pretty simple because you just have to follow section 115JB word to word.
U shall not apply your mind.

Take net profit as per P&L (prepared in accordance with Companies Act, 2013)

And then

*Add*
the items that are required to be added as per explaination 1 to the section 115JB

And then

*Deduct*
the items that are required to be deducted as per explaination 1 to the section 115JB

Resultant figure would be your Book profit on which tax @ 18.5%(plus EC SHEC 3%) would be your MAT.

Its actually pretty simple because you just have to follow section 115JB word to word.
U shall not apply your mind.

Take net profit as per P&L (prepared in accordance with Companies Act, 2013)

And then

*Add*
the items that are required to be added as per explaination 1 to the section 115JB

And then

*Deduct*
the items that are required to be deducted as per explaination 1 to the section 115JB

Resultant figure would be your Book profit on which tax @ 18.5%(plus EC SHEC 3%) would be your MAT.

Is there any logic to remember the additions and deductions from the Net Profit?

Is there any logic to remember the additions and deductions from the Net Profit?

Is there any logic to remember the additions and deductions from the Net Profit?

Is there any logic to remember the additions and deductions to and from the Net Profit?

I think by "logic" u mean a "simplified manner"
Then answer is yes.

Read the following very care fully.
Also.. I am giving just a simplified series to memorize but u shall read section 115JB once to know in detail about every addition and deduction.
See

15 items to be added and 12 to be duducted.

11 items in both addition and deductions corresponds with each other.
So remember them in comparative way as follows.

add any transfer to any reserve
deduct withdrawal from any reserve
Add balance of revaluation reserve on retirement of asset if not credited to p&l
deduct transfer from revaluation reserve
Add depreciation as per Companies Act deduct depreciation as per Companies Act less depreciation on Revalued asset
Add deffered tex if debited
deduct deferred tax if credited
add losses of subsidiary company
deduct profit of sick industrial company
add loss on sale of shares to business trust
Deduct gain on sale of shares to business trust
Add gain on sale of units of business trust
deduct loss on sale of units of business trust
deduct the following income
1. exempt income under section 10 11 12 except 10(38)
2. share income of a foreign company being income from capital gain on security AND interest royalty fees for Technical Services
3. income under section 115 bbf royalty income
4.share in income of AOP BOI

and deduct the expenditure pertaining to these four income.

Now remaining 4 items of addition
1. Income tax, in on IT, SC, ECSHEC, DDT
2. DIVIDEND PAID OR PROPOSED
3. Provison for unacertained or contingent liab
4. Prov for diminition in value of asset

One last item to be deducted
1. Amount as per books of accounts being lower of the following
))) b/f biz loss
))) unabs dep.

Happy reading.

I think by "logic" u mean a "simplified manner"
Then answer is yes.

Read the following very care fully.
Also.. I am giving just a simplified series to memorize but u shall read section 115JB once to know in detail about every addition and deduction.
See

15 items to be added and 12 to be duducted.

11 items in both addition and deductions corresponds with each other.
So remember them in comparative way as follows.

add any transfer to any reserve
deduct withdrawal from any reserve
Add balance of revaluation reserve on retirement of asset if not credited to p&l
deduct transfer from revaluation reserve
Add depreciation as per Companies Act deduct depreciation as per Companies Act less depreciation on Revalued asset
Add deffered tex if debited
deduct deferred tax if credited
add losses of subsidiary company
deduct profit of sick industrial company
add loss on sale of shares to business trust
Deduct gain on sale of shares to business trust
Add gain on sale of units of business trust
deduct loss on sale of units of business trust
deduct the following income
1. exempt income under section 10 11 12 except 10(38)
2. share income of a foreign company being income from capital gain on security AND interest royalty fees for Technical Services
3. income under section 115 bbf royalty income
4.share in income of AOP BOI

and deduct the expenditure pertaining to these four income.

Now remaining 4 items of addition
1. Income tax, in on IT, SC, ECSHEC, DDT
2. DIVIDEND PAID OR PROPOSED
3. Provison for unacertained or contingent liab
4. Prov for diminition in value of asset

One last item to be deducted
1. Amount as per books of accounts being lower of the following
))) b/f biz loss
))) unabs dep.

Happy reading.