Book Profit
Book
Profit of company shall be determined as under: -
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Net profit as shown in the profit and loss
account for the relevant previous year prepared as stated in paragraphs
38 to 40
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XXX
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Add: The following amounts, if
debited in the Profit and Loss Account:-
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Income-tax paid or payable, and the provision
therefore (including Dividend Distribution Tax), Surcharge Education
Cess and Interest charged under this Act
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XXX
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Transfers to any reserves, by whatever name
called, other than a reserve specified under section 33AC
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XXX
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Amount(s) set aside to provisions made for
meeting liabilities, other than ascertained liabilities
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XXX
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Provision for losses of subsidiary companies
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XXX
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Dividends paid or proposed
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XXX
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Expenditure relatable to any income to which
section 10 (other than sections 10A or 10B or 11 or 12) applies
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XXX
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Depreciation
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XXX
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Deferred Tax and Provision therefor
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XXX
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Provision for diminution in the value of any
asset
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XXX
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Provision for diminution in the value of any
asset
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XXX
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Less: The following amounts: -
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Withdrawals from reserve or provision, if they
have been credited in Profit & Loss Account, being -
- Reserve created before 01.04.1997 by way
of debit to Profit and Loss Account
- Reserve created on or after 01.04.1997,
which has been specifically added back as aforesaid while
computing book profit under this section
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XXX
XXX
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Income relatable to sections 10 [other than
10(23G)], 10A, 10B, 11 or 12, if credited in Profit and Loss Account
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XXX
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Depreciation debited to Profit and Loss
Account (excluding the depreciation on account of revaluation of
assets)
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XXX
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Loss brought forward or unabsorbed
depreciation, whichever is less, as per books. [For this purpose, loss
shall not include depreciation. If, either the brought forward loss or
unabsorbed depreciation is 'nil', then no deduction is allowable] |
XXX
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Amount withdrawn from revaluation reserve and
credited to Profit and Loss Account, to the extent it does not exceed
the amount of revaluation of assets |
XXX
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Amount eligible for deduction under sections
80HHC or 80HHE or 80HHF |
XXX
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Amount eligible for deduction under sections
80HHC or 80HHE or 80HHF |
XXX
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Profits of sick industrial company for the
previous years during which it is sick [i.e., the networth is lower
than accumulated losses] |
XXX
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Deferred Tax credited to the Profit and Loss
Account |
XXX
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XXX
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Book
Profit for the purposes of section 115JB |
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XXX
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The determination of book-profit, as above, shall
not affect the determination of amount to be carried forward as loss or
unabsorbed allowances under sections 32(2), 32A(3), 72(1)(ii), 73, 74
or 74A((3).
Every company, to which section 115JB applies,
shall furnish a report in Form 29B, from a Chartered Accountant,
certifying that the book profit has been computed in accordance with
the provisions of this section, along with the return of income filed
under section 139(1) or section 142(1)(i).
Do you have any queries?
Please write to us.
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