Question ID :
42267
MAT under Sec.115 JB
As per sec.115JB, brought forward loss or unabsorbed depreciation whichever is less as per books to be deducted for arriving at adjusted book profits. Suppose a company has negative balance of profit and loss account carried in balance sheet but has general reserve created in earlier years, whether the two has to be netted off to arrive at brought forward loss or unabsorbed depreciation as per books?
Posted by
balasubramanian
on
Apr 29, 2022
Filed Under
DIRECT TAXES
Answer ID :
81475
No. Brought forward business loss for the purpose of section 115JB shall mean loss as per profit and loss account. It does not include balance of general reserve.
Posted by
CA. chunauti dholakia on
Apr 29, 2022