Query on mat

 

It should be considered for calculating book profit.

thanx khushboo.. but if we take ltcg into book profits, then wont be paying tax on ltcg also.. but ltcg are exempt as per tax provisions

Yes , you are right dear that ltcg is exempt from tax so why should it be incorporated in calculation of mat. Basiclly provisons of mat is introduce to tax companies profits from books of which are laid before shareholder"s in AGM. companies shows higher profit in front of share holders and lower profit as per income tax provisons therefore to curb these presantation provisons of MAT introduced in mat companies taxed on book profit if profit as per income tax lower n mat credit given to companies up to ten years

Long Term Capital Gain should be CONSIDERED for calculating book profit i.e Income to which section 10 (38) appy should not be reduced from book profit and Expense in relation to income to which section 10 (38) apply should not be added back to book profit.

 

Even Long Term Captal Gain Which is exempted u/s 10(38) companys liability to pay mat on LTCG will

not be exluded.

hello, every one, as you all have expressed ur view on treatment of LTCG U/S10(38) for MAT Calculation purpose, i am also agree with almost all of u.

according to exlanation to sec 115JB the LTCG u/s 10(38) will be added to net profit shown in p&l a/c i.e.it will not be deducted from profit , if it is included in p&l a/c and so any expenditure u/s10(38) debited to p&l a/c is not to added for book profit calculation.it is an allowable expenditure for MAT.