Book Profit

Deferred tax Considered under MAT as per 115JB?

Income Tax - The treatment of deferred tax charge in determining the tax liability under the special provisions of Section 115JB of the Income-Tax Act is one such case. Section 115JB levies minimum alternate tax (MAT) at 10% of book profits (plus surcharge and cess thereon) if such tax is higher than the tax payable under the normal provisions of the ...

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Corporate Tax Rate Applicable for AY 2019-2020 & AY 2020-2021

Income Tax - Income tax rates are decided and governed by Income Tax Act 1961 and are subject to change every year. This article will cover the income tax rates applicable to Domestic Companies for the Assessment Year 2019-2020 and Assessment Year 2020-2021 (As per the Taxation Laws (Amendment) Act, 2019) respectively, also cover Minimum Alternate Tax...

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Section 115J, 115JA & 115JB may ultra vires Constitution of India & Income-tax Act, 1961

Income Tax - CA Dev Kumar Kothari Section 115J, 115JA and 115JB may be ultra vires the Constitution of India and the Income-tax Act,1961 – a study with reference to some very weakly prepared and contested cases about validity of provision for tax on book profit / minimum alternate tax (MAT) and some suggestions for tax payers and […]...

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Rejection of books of Accounts – Section 145(3) – Issues & Case Laws

Income Tax - Section 145 of the Income Tax Act 1961, lays down that income chargeable under the head “Profit and gains of business or profession” or “Income from other sources” shall, subject to the accounting standards notified by the Central Government in the Official Gazette, be computed in accordance with either cash or mercantile system o...

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Download Automatic MAT Calculator in Excel Format with Case Laws

Income Tax - We have attached below an excel utility to compute the MAT as per provisions of Section 115JB of Income Tax Act, 1961. While preparing the utility Author of the utility has  considered various income-tax cases decided by various judicial authorities both in favour of assessee and in favour of revenue. Utility is in Excel File Format [&h...

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Guidance Note on Report under section 115JC of Income-tax Act, 1961

Income Tax - The Finance Act, 2011 for the first time introduced the provisions relating to Alternate Minimum tax for the Limited Liability partnerships. In order to moderate the outgo of profit linked deductions, the Finance Minister in the year 2012, extended the levy of this tax to all non corporate assesses. The onerous responsibility to verify th...

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In revised DTC MAT proposed to be computed on book Profits and not on Gross Assets

Income Tax - The revised discussion paper on DTC, released on 15.05.2010, has addressed the concerns on all the nine areas that were brought to the notice of the Finance Minister. It has sought to restore the computation of minimum alternate tax (MAT) on book profit basis....

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Budget 2010-11: Change in Income tax provisions on Conversion of a private company or an unlisted public company into a LLP

Income Tax - The Finance (No. 2) Act, 2009 provided for the taxation of LLPs in the Income-tax Act on the same lines as applicable to partnership firms. Section 56 and section 57 of the Limited Liability Partnership Act, 2008 allow conversion of a private company or an unlisted public company (hereafter referred as company) into an LLP. Under the exis...

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IT department claimed Rs 30,000 crore from companies that violated MAT provisions

Income Tax - Income Tax department has claimed Rs 30,000 crore from companies that have violated provisions under the minimum alternate tax. Sources said the claim is not only for the current assessment year of 2009-10, wherein assessments are still going on, but also for previous four-five assessment years, which are under litigation either in courts...

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MAT will be eased for infrastructure companies in new DTC

Income Tax - The government is likely to ease the incidence of minimum alternate tax, or MAT, on infrastructure companies. The department of revenue plans to change the proposed direct tax code to exempt these companies from MAT for the first few years since they execute projects with long gestation periods. The code, in its current form, says all com...

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Indexed cost of acquisition can be reduced to compute book profits U/s. 115JB

Best Trading and Agencies Ltd. Vs. DCIT (Karnataka High Court) - The issue under consideration is whether the indexed cost of acquisition can be reduced for the purpose of computing book profits under Section 115JB of the Act?...

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Section 115JB Doesn’t Envisage Enhancement of Taxable Profits by Adding Loss incurred in Redemption of MF

Hespera Realty Pvt. Ltd. Vs DCIT (ITAT Delhi) - Whether upward adjustment to book profit under section 115JB of the Act, by treating the loss on purchase and redemption of mutual funds as expenditure relatable to earning exempt income is justified in law?...

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Section 234B & 234C Interest on Book Profit Not Justified

PCIT Vs Mangalore Refnery & Petrochemicals Ltd. (Bombay High Court) - The issue under consideration is whether the charge of interest under sections 234B and 234C on the book profit was not justified?...

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Book profit | Section 10A deduction | HC refers matter back to ITAT

Yokogawa India Ltd Vs DCIT (Karnataka High Court) - The tribunal has held that net profits have to be determined as per the provisions of the companies Act and thereafter, the adjustments have to be made. It has further been held that the assessee cannot adjust the books of profit except as provided under the companies Act....

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While computing income U/s. 115J AO cannot tinker book profit

DCIT Vs Yahoo Software Development Private Limited (ITAT Bangalore) - Assessing Officer tinkered the book profit by adding the additional revenue on account of subsequent realization of export, while computing the book profit u/s 115JB of the Act. The assessee has revised the return of income by including the additional revenue in its total income....

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Recent Posts in "Book Profit"

Deferred tax Considered under MAT as per 115JB?

The treatment of deferred tax charge in determining the tax liability under the special provisions of Section 115JB of the Income-Tax Act is one such case. Section 115JB levies minimum alternate tax (MAT) at 10% of book profits (plus surcharge and cess thereon) if such tax is higher than the tax payable under the normal provisions of the ...

Read More
Posted Under: Income Tax |

Indexed cost of acquisition can be reduced to compute book profits U/s. 115JB

Best Trading and Agencies Ltd. Vs. DCIT (Karnataka High Court)

The issue under consideration is whether the indexed cost of acquisition can be reduced for the purpose of computing book profits under Section 115JB of the Act?...

Read More

Section 115JB Doesn’t Envisage Enhancement of Taxable Profits by Adding Loss incurred in Redemption of MF

Hespera Realty Pvt. Ltd. Vs DCIT (ITAT Delhi)

Whether upward adjustment to book profit under section 115JB of the Act, by treating the loss on purchase and redemption of mutual funds as expenditure relatable to earning exempt income is justified in law?...

Read More

Section 234B & 234C Interest on Book Profit Not Justified

PCIT Vs Mangalore Refnery & Petrochemicals Ltd. (Bombay High Court)

The issue under consideration is whether the charge of interest under sections 234B and 234C on the book profit was not justified?...

Read More

Book profit | Section 10A deduction | HC refers matter back to ITAT

Yokogawa India Ltd Vs DCIT (Karnataka High Court)

The tribunal has held that net profits have to be determined as per the provisions of the companies Act and thereafter, the adjustments have to be made. It has further been held that the assessee cannot adjust the books of profit except as provided under the companies Act....

Read More

While computing income U/s. 115J AO cannot tinker book profit

DCIT Vs Yahoo Software Development Private Limited (ITAT Bangalore)

Assessing Officer tinkered the book profit by adding the additional revenue on account of subsequent realization of export, while computing the book profit u/s 115JB of the Act. The assessee has revised the return of income by including the additional revenue in its total income....

Read More

Corporate Tax Rate Applicable for AY 2019-2020 & AY 2020-2021

Income tax rates are decided and governed by Income Tax Act 1961 and are subject to change every year. This article will cover the income tax rates applicable to Domestic Companies for the Assessment Year 2019-2020 and Assessment Year 2020-2021 (As per the Taxation Laws (Amendment) Act, 2019) respectively, also cover Minimum Alternate Tax...

Read More
Posted Under: Income Tax |

Guidance Note on Report under section 115JC of Income-tax Act, 1961

The Finance Act, 2011 for the first time introduced the provisions relating to Alternate Minimum tax for the Limited Liability partnerships. In order to moderate the outgo of profit linked deductions, the Finance Minister in the year 2012, extended the levy of this tax to all non corporate assesses. The onerous responsibility to verify th...

Read More
Posted Under: Income Tax |

Section 115J, 115JA & 115JB may ultra vires Constitution of India & Income-tax Act, 1961

CA Dev Kumar Kothari Section 115J, 115JA and 115JB may be ultra vires the Constitution of India and the Income-tax Act,1961 – a study with reference to some very weakly prepared and contested cases about validity of provision for tax on book profit / minimum alternate tax (MAT) and some suggestions for tax payers and […]...

Read More
Posted Under: Income Tax |

Rejection of books of Accounts – Section 145(3) – Issues & Case Laws

Section 145 of the Income Tax Act 1961, lays down that income chargeable under the head “Profit and gains of business or profession” or “Income from other sources” shall, subject to the accounting standards notified by the Central Government in the Official Gazette, be computed in accordance with either cash or mercantile system o...

Read More
Posted Under: Income Tax |

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