Answer Posted / tax beginner

The Indian Income Tax Act contains large number of
exemptions from total income. Besides exemptions, there are
several deductions permitted from gross total income.
Further, depreciation allowable under the Income Tax Act is
not the same as required under the Companies Act. The
result of such exemptions, deductions, and other incentives
under the Income tax Act in the form of liberal rates of
depreciation is the emergence of Zero tax companies which
in spite of having high book profit are able to reduce
their taxable income to nil.

The system of minimum alternate tax has accordingly been
introduced under which a company is required to pay a
minimum tax of 18 % of the book profit in case the tax on
the total income computed under the normal provisions of
law works out to less than this amount [Sec 115JB].

So if Book Profit before Depreciation for a Construction
(Infrastructure) Company is for example Rs.7,00,000/- and
after claiming for Depreciation and other exemptions Gross
Taxable Income comes down to 4,00,000/-. The Tax works out
to be Rs.1,20,000/- (30%).
However MAT works out to be Rs.1,26,000/- (Rs.7,00,000/- @
18%). The Company has to pay the MAT of Rs.1,26,000/-

in relation to pioneer industries, explain the following terms:1,production day. 2,certificate of qualify expenditure. 3,income tax relief. 4,pioneer certificate 2. list seven pioneer industries which fall under pioneer status as contained in the industrial development act 1971

3173

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how to calculate tax for the income earners

2235

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Apply for TDS certificate in bank for rent purpose is wrongly entry as 94C instead of 94I. Is any problem?

1830

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taxes leivied on carpentar & plumbing services

1694

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Differentiate between financial year, assessment year and previous year?

1253

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Can we pay advance salary to a single employee in cash of an amount exceeding 10,000?

1465

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i paid tds through my bank account but i entered the assessment year as 2010-11(the current year) instead of 2011-12(actual assessment year). what is the remedy for this. how do i get refund for the wrongly paid sum. or is there any way to currect the assessment year?

2174

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Explain the Calculation of Sales Tax?

2154

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When & how vat audit takes Place in haryana. Is Scrutiny & vat audit is same?

4051

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Tell about dvat and dvat rate

3175

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if cst sales and purchase is completed and we issue c form and received c form also.but in next month both sales and purchase are return. my question is how to pass reverse entry when c forms issue/receive. how it cst return also.

2991

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Deferred taxation is a part of which equity?

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how to creat e-vat return in tally

2076

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Dear sir, mu question is that can one lunch (Tiffin) provider person mention both vat or service tax on his bill. pls. give me answer. EXPLAIN BRIEFLY.

3160

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what to in pro

2377

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