How to Make 115JB right calculation

Dear All

Following is my confusion on the applicability and calculation of MAT as per sec 115JB
  1. In the addition clause it is mentioned that the amount of depreciation is to be added back kindly correct me if it is not as per Companies Act Dep.
  2. In the deletion clause it was also mentioned that the amount of depreciation is to be deducted (other than on account of revaluation reserve) Here also I am taking depreciation as per Co. Act
  3. In the same segment it is mentioned that amount of loss (before depreciation) brought forward OR unabsorbed depreciation AS PER BOOKS OF ACCOUNT, whichever is less is to be added back. Now here please correct me whether I should take/consider the amounts as per Income Tax or as per Companies Act.
Please give your expert comment on the above ,I am also enclosing the computation as prepared by me. I have not considered the Bf loss /unab dep as per Income Tax Act

Attached File : 0 computation of total income.doc downloaded 562 times
Practicing Chartered Accountant

Dear Ashish Sir,


Your understanding is correct for 1 and 2, also while filing ROI i.e. ITR-6, in MAT schedule you are not required to add/less depriciation(if it is as per Companies Act).


In relation to your 3 question; Unabsorbed Depriciation _ Brought forward Loss whichever is less as per books of Account (i.e. Company Act) is shall be deducted.




For your 1 point  if  u look at the itr6 in the addtion column it was given that depreciation as company act should be allowed to be deducted but the depreciation attributable to the revaluation of fixed asset if debited to the p/l should be add back while calculating the book profit as per 115JB and for your 2 poing it was given that if you withdrawn any amount from your revaluation reserve and credited it to the p/l a/c then while calculating the book profit you will have deduct that amount which should not exceed the depriciation attributable to the revaluation of fixed assets and for  third point  it should be as per book of account



basically i am saying what the juzer said in short

Chartered Accountant

 as per books of account in all cases because as per 115JB profit & loss as per books  of account is adjusted for calculation of book profits>>>


good anwer kapil

Senior Artical

if i have a b/f loss is 13,00,000.00 as per books and as per i.t. loss is 9,00,000.00 this diff. is due to FBT & Income Tax Amt.

How can Comapny Set off this Loss


we have book profit Rs. 400000.00 during the f.y.2012-13. we have also brought forward loss and depreciation loss as per i.t Rs.10,00,000.00. how to calculate 115 JB tax. 



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