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MAT problems

Learner (Student) (409 Points)

14 October 2010

In which of these following cases, surcharge is applicabe for company?

(a) Income computed under normal income tax provisions -1.5 Crores
Income computed u/s 115JB - 90 lakhs.

(b) Income computed under normal income tax provisions -85 Lakhs
Income computed u/s 115JB -1.45 crores.

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2 Replies

CA bhargava (CA) (2017 Points)
Replied 14 October 2010

in each case

a.SC is applicable for Income tax profit and not for book profit.(Rates-33.99/15.45)

b.SC is not applicable for IT profit but applicable for book profit.(30.9/16.995)

c.SC is not applicable to any profit(30.9/15.45

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 14 October 2010

An extract from chapter II of finance act 2009(2):

Provided further that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115E and 115JB or fringe benefits chargeable to tax under section 115WA of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the Union, calculated,—

(a) in the case of every individual, Hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of such income-tax where the total income exceeds ten lakh rupees;

(b) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, at the rate of ten per cent of such income-tax;

(c) in the case of every firm and domestic company, at the rate of ten per cent of such income-tax where the total income exceeds one crore rupees;

(d) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such income-tax where the total income exceeds one crore rupees :

Answer:

a) surchage shall be applicable, as total income exceed Rs. 1 crore.

b) and c): surcharge not applicable, as total income does not exceed Rs.1 crore