Hii Can any one plz tell me about MAT Calculation and its applicability in case of company having Capital gain.
Menu
Mat
Replies (2)
MAT is applicable to all the companies. If Income tax payable by the company is less than 18.5% of the Profit as per P&L Account, then the company has to pay income tax equal to 18.5% of Profit, it is called MINIMUM ALTERNATE TAX [MAT].
| Computation of Tax Liability of Company Assessee | ||
| Computation of Book profit for AY 2013-2014 u/s 115JB | ||
| Particulars | Amount Rs. | Amount Rs. |
| Net Profit as per Profit and Loss Account | 8 | |
| Add: Amount Debited to the Profit & Loss Account | ||
| Income Tax (Paid or payable) | ||
| Dividend Distribution Tax | ||
| Amount transferred to any reserve | ||
| Provision for uncertain liabilities | ||
| Dividend Paid or Proposed | ||
| Expenses relating to income covered u/s 10 [other than sec.10(38)], 11 & 12 | ||
| Depreciation | ||
| Deferred Tax (If debited) | ||
| Provision for diminution in the value of any asset | 0 | |
| ------------------- | ||
| 8 | ||
| Less: Amount Credited to the Profit & Loss Account | ||
| Amount withdrawn from Reserve | ||
| Income covered u/s 10 [other than sec.10(38)], 11 & 12 | ||
| Amount of depreciation excluding depreciation on revaluation of assets | ||
| Amount withdrawn from Revaluation Reserve | ||
| Brought forward Depreciation (As per books of account) | ||
| Brought forward Loss excluding depreciation (As per books of account) | ||
| Deferred Tax (If credited) | ||
| Profit of sick industry company | 0 | |
| ------------------- | ||
The Above calculation shows that, if there is a long term capital gain, otherwise exempt u/s 10(38). This will be taken into account while calculating Book Profit u/s 115JB. So, if MAT is applicable then you will have to pay tax on Long Term Capital Gain.
Thanks it will be really beneficial.
Recent Topics :
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
- GSTR-9 Table 8A issue
- CA Inter Coaching institutes at Hyderabad
- Looking for practising CA
- TDS return filing
Related Topics :
CAclubindia
