MAT - Unabsorbed Depreciation

Lower of unabsorbed depreciation and book loss is allowed as a deduction for the purpose of calculating MAT.

Unabsorbed Depreciation as per books and

Broughtforward business loss as per books , which ever is less will be deduct from the adjusted book profit.

In your case you have already adjusted business loss from the book profit. Now you cannot adjust Unabsorbed depreciation from the book profit.

MAT will be calculated on Rs. 3 Lakhs.

Originally posted by : Jagdish Bhalia
	Unabsorbed Depreciation as per books and Broughtforward business loss as per books , which ever is less will be deduct from the adjusted book profit. In your case you have already adjusted business loss from the book profit. Now you cannot adjust Unabsorbed depreciation from the book profit. MAT will be calculated on Rs. 3 Lakhs.

Then Should I Carry Forward Unabsorbed Depreciation For Subsequent Years to Set Off.

Or It Become Irrelevant to Setoff Now.

You can carry forward the business loss for MAT purpose only.

Because in Income tax Brought forward business loss and unabsorbed depreciation will be differ from books. While calculating the total Income as per income tax act, unabosbed depreciation as per Income tax act will be considered.

I think ur doubt is clear.

dear ayush , 

as per sec 115jb of income tax act,

Lower of (as per company's book)

a)Business loss or

b)unabsorbed depreciation 

shall be deducted .

So far as ur query relates to carry forward of unabsorbed depre. as per books  , so it can be carried fo

forward and next year if co. pays mat then again lower concept be applicable. 

In case of mat we are nowhere concerned with income tax sections becoz  sec115JB is a self 

contained section. mat tax has to be calculated with its governing provs.

IF any further query , u may ask ....

bye  

in case after adjustment of B/F unabsored  depreciation or business  loss position is Book loss then company is liable to pay MAT  Plz  Help. 

If book profits calculated as per section 115JB is also a loss then MAT will not be payable.

Is MAT -Minimum Alternate Tax applicable to the POWER generation companies..i.e.Sec.115JB

Dear All,

One company has already adjusted lesser of unabsorbed depreciation and business loss as per books under MAT, last year i.e. FY 09-10.

But still, there are carried forward losses in the form of Debit balance of profit and loss account. Now, in FY 10-11,

1. Should the company again make backward calculation to check the figure of lower of unabsorbed depreciation and business loss, to claim lesser of the two from current year calculation of MAT.

Or 2. No deduction on account of lower of unabsorbed depreciation and loss will be allowed in FY 10-11, as the Company has already taken the benefit in FY 09-10.

Please clarify.

I am still in doubt, all the business losses have been set off , now we are left with unabsorbed depreciation only so shall i deduct it for the purpose of book profit u/s 115J ?

For 115JB, Lower of Unabsobed depreciation or Carried forward Loss can be set off

One Company has no any Unabsorbed Depreciation in previous years, but has business Loss. In this current year The company has been arised as profit. In this case business loss adjusted in current year profit, so no taxable income arises. Can the company claim business loss in MAT calculation without any unabsorbed Depreciation (which is lower)?

Please clarify.

If we have only Brought Fwd Unabsorbed Dep. Will it be reduced from Book Profits  to calculate MAT.