Section 115jb: book profit - mat
Dear Friends,
Under Section 115JB of IT Act 1961, in order to Compute Book Profit, the following is to be reduced from Profit/Loss as per Companies Act 2013:
(i) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account.
Explanation.-For the purposes of this clause,- (a) the loss shall not include depreciation;
(b) the provisions of this clause shall not apply if the amount of loss brought forward or unabsorbed depreciation is nil
Now My queries are:
1. What is the Loss Brought Forward here ? Is it as per Sch III of Companies Act 2013 OR as per Loss computed as per 115JB (i.e. Book Loss) ?
For Example: Suppose 1st Year, Loss as per Sch III is ? 1,00,000/- and Book Loss as per 115JB is ? 75,000/- (because of some additions and Deletions) Now in 2nd Year, for the purpose of "Loss Brought Forward" under section 115JB, Which amount is to be taken : ? 1,00,000/- or ? 75,000/-. ??
2. For Unabsorbed Depreciation as mentioned above, Depreciation is to be computed as per Companies Act OR Income Tax Act ?
3. From following example, please advise Amount to be taken for loss brought forward or unabsorbed depreciation for Book Profit Computation u/s 115JB for FY 2015-16:
Financial Year Profit/(Loss) as per Sch III
(before Depreciation) Depreciation as per Companies Act Total Profit/(Loss) as per Sch III
2011-12 (50,000) 25,000 (75,000)
2012-13 80,000 1,00,000 (20,000)
2013-14 60,000 40,000 20,000
2014-15 (75,000) 35,000 (1,10,000)
Total 15,000 2,00,000 (1,85,000)