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Minimum Alternate Tax as per section 115JB

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Lalit Ahuja

chartered accountant

33 Points Posted on 24 November 2021

1. Is Minimum Alternate Tax as per section 115JB is applicable on profit on sale of Fixed assets of the company ?

2. Normal Tax is not applicable due to Long term capital loss on such assets. In earlier year ,there were business losses in both as per Company Act and Income Tax Act.

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Quick Summary

This discussion explores the applicability of Minimum Alternate Tax (MAT) under section 115JB on profits derived from the sale of fixed assets. It clarifies that such capital profits are indeed subject to MAT, even if normal tax isn't applicable due to long-term capital losses on those assets. The profit is considered a capital profit transferred to the capital reserve.