Mat Computation

During the computation of income tax of a limited company an amount is credited as profit on sale of land(owned by the business) in the P & L account .At the time of MAT calculation this income is included in the book profit thus the MAT value increases but if the sale amount is included in the head of long term capital gain which lowers the profit through indexing which brings the tax amount  lower than MAT.What is the correct treatment for the above.

Replies (3)

Profit on Sale of Land will REMAIN INCLUDED FOR THE COMPUTATION OF BOOK PROFIT UNDER MAT...

 

Originally posted by : justin
Dear as per explanation of sec 115J explanation all the 9 item as mention in that explanation shall be added . so u can not go beyond the provision.


 

You should go through sec. 115j

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