MAT
1. The taxable income of X Pvt. Ltd. computed as per the provisions of Income-
tax Act is Rs. 8,40,000. Book profit of the company computed as per the
provisions of section 115JB is Rs. 18,40,000. What will be the tax liability of X
Pvt. Ltd?
2. The book profits of a company in 2019-20 computed in accordance with
Section 115JB of the Income Tax Act is ₹1200000. Its total income under IT
act for the same period is computed at ₹350000. Compute tax liability of the
company.
3. Kwality Electronics Ltd. Is a domestic company in which public are
substantially interested. The following are the particulars of income in respect
of 2019-20:
a. Interest on government securities ₹20000
b. Income from business ₹500000
c. STCG ₹15000
d. LTCG ₹33000
e. Dividend from Indian company (gross) ₹10000
f. Dividend from foreign company ₹10000
g. Book profits u/s 115JB ₹900000
Compute total income and net tax liability of the company for A.Y.2020-21.
4. The Net Profit of X Company Ltd., as per profit and loss account for the year
ended 31.03.2020 23 is Rs. 17,50,000. From the following information
calculate the Book-Profit of the Company under section 115JB for the
assessment year 2020-21: give at 15%
The following amounts are found debited to profit and loss account: (Rs.)
Excise Duty 1,50,000
Provision for Unascertained Liability 1,00,000
Loss of Subsidiary Company 2,00,000
Provision for Income Tax 2,50,000
Wealth Tax 5,000
Proposed Dividend 9,95,000
The following amount is found credited to profit and loss account:
General Reserve (withdrawal) 5,00,000
Additional information:
Unabsorbed losses/ allowances brought forward from past year as per books of
accounts prepared under Companies Act are as follows: (Rs.)
Unabsorbed Business Loss (excluding depreciation) 2,65,000
Unabsorbed Depreciation 3,50,000
5. From the following information compute tax payable by Z and Co. keeping in
view the provisions of MAT u/s 115JB for the A.Y.2020-21.
6. X Co. has provided the following information for the year ended 31.3.2020:
7. Following is Profit and Loss account of Horizon Ltd. for year ended 31-3-20:
Other information:
For tax purposes, the company wants to claim the following:
a. Custom duty of Rs. 50,000 pertaining to 2015-16 paid during 2019-20.
b. Depreciation under section 32 is Rs. 6,00,000.
c. Assets whose book value was Rs. 8,00,000 was revalued at Rs. 20,00,000.
d. The company wants to set-off the following losses/ allowances:
For Tax purposes For Accounting Purposes
(Rs.) (Rs.)
B/F Loss of 2018-19 7,40,000 8,00,000
Unabsorbed Depreciation 3,00,000 4,50,000
Compute net taxable income and tax liability as per the normal provisions of
Income tax Act and MAT provisions for the assessment year 2020-21.
8. X Ltd. is engaged in the business of manufacturing garments:
Amount (Rs.)
Sale proceeds of goods (domestic sale) 22,23,900
Sale proceeds of goods (export sale) 5,76,100
Amount withdrawn from general reserve (reserve was created in
1996-97 by debiting profit and loss account) 2,00,000
Amount withdrawn from revaluation reserve 1,50,000
Total 31,50,000
Less: Expenses:
Depreciation (normal) 6,16,000
Depreciation (extra depreciation because of revaluation) 2,70,000
Salary and wages 2,10,000
Income-tax 3,60,000
Outstanding customs duty (not paid as yet) 17,500
Proposed dividend 60,000
Consultation fees paid to a tax expert 21,000
Other expenses 1,39,000
Net Profit 14,56,500
For tax purposes the company wants to claim the following:
a. Depreciation under section 32 is Rs. 5,36,000.
b. The company wants to set off the following losses/ allowances:
For tax purposes For accounting purposes
(Rs.) (Rs.)
Brought forward loss of 2011-12 14,80,000 4,00,000
Unabsorbed depreciation ---- 70,000
Compute the net income and tax liability of X Ltd. for the assessment 2020-21
assuming that X Ltd. has a long–term capital gain of Rs. 60,000 (taxable @20%)
which is not credited in profit and loss account.
